T v Insert Table Chart Text Shape Media Comment 4) The trade model described in the text demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage. In reality we do not see complete specialization in production. State three reasons why this is case. 5) What are the four main sources of comparative advantage? Briefly explain each source and provide examples. Figure 9-1 Price $50 U.S. Supply 24 World price 18 10 U.S. Demand 10 15 20 Quantity of leather footwear 6. Figure 9-1 shows the U.S. demand and supply for leather footwear. a) Refer to Figure 9-1. Under autarky, the consumer surplus is A) $195. B) $260. C) $300. D) $555. b) Refer to Figure 9-1. Under autarky, the producer surplus is A) $40. B) $105. C) $195 D) $285. c) Refer to Figure 9-1. Suppose the government allows imports of leather footwear into the United States. What will the market price be? A) $10 B) SIS C) $24 D) >$24