Question: URGENT: Please provide workings for each answer, Question attached in the image below. Refer to the following Figure. Q4 are QB a. In autarky, which
URGENT: Please provide workings for each answer, Question attached in the image below.

Refer to the following Figure. Q4 are QB a. In autarky, which point (in Figure 1) must be chosen by the country to maximise its economic welfare? (1 mark) Assume that the relative connnodity price :A = l in autarky. When the country is opening for B international trade, the new relative commodity price :A is now equal to 2. B b. Suppose the country is concerned in achieving economic welfare gains from trade, at which point would the country choose to produce? (1 mark) c. Identify which commodity does the country has the comparative advantage. (1 mark) Now, suppose that the relative commodity price of :A is 0.5 instead. B d. uid such country still be able to gain from trade? (1 mark) e. Where would its production point be at this new relative commodity price? (1 mark)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
