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Current Step1 of 10
1
Free Trade Equilibrium
A market imports goods under free trade when Pw < P* (i.e. the international market is more competitive than the domestic market). Consumers consume at Qd, importing quantities Qd - Qs, with domestic producers only supplying up to Qs.
Current Step1 of 10
1
Free Trade Equilibrium
A market imports goods under free trade when Pw < P* (i.e. the international market is more competitive than the domestic market). Consumers consume at Qd, importing quantities Qd - Qs, with domestic producers only supplying up to Qs.