A semiconductor is a key component in your laptop, smartphone, and iPad. The table provides information about the market for semiconductors in the United States.

Producers of semiconductors can get $18 a unit on the world market.

a. With no international trade, what would be the price of a semiconductor and how many semiconductors a year would be bought and sold in the United States?

b. Does the United States have a comparative advantage in producing semiconductors?

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Price (dollars per unit) 10 12 14 16 18 20 Quantity Quantity demanded supplied (billions of units per year) 25 0 20 15 10 5 0 240 60 80 100