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Answer to Question #126314 in Microeconomics for malaika

Question #126314
Suppose that the world price of cotton is $250 a ton, Pakistan does not trade internationally, and the equilibrium price of cotton in Pakistan is $150 a ton. Pakistan then begins to trade internationally.
a.Howdoes the price of cotton in Pakistan change?
b.Howdoes the quantity of cotton produced in Pakistan change?
c.Howdoes the quantity of cotton bought by Pakistan change?
d.DoesPakistan export or import cotton and why?



Draw the diagram
1
Expert's answer
2020-07-14T09:47:45-0400
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