Question: From the figure it is apparent that Question 43 options: Guatemala will experience a shortage of coffee if trade is not allowed. Guatemala will experience

From the figure it is apparent that Question 43 options: Guatemala will experience a shortage of coffee if trade is not allowed. Guatemala will experience a surplus of coffee if trade is not allowed. Guatemala has a comparative advantage in producing coffee, relative to the rest of the world. foreign countries have a comparative advantage in producing coffee, relative to Guatemala.

Guatemala 140 Domestic Supply A 110 B D G World Price 90 H PRICE (Dollars per unit of coffee) C Domestic Demand 30 18 30 40 QUANTITY (Units of coffee)

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