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Answer to Question #126315 in Microeconomics for Hamza

Question #126315
suppose that the world price of cotton is $250 a ton, pakistan does not trade internationally and the equilibeium price of cotton in pakistan is $150 a ton .pakistan begins to trade internationally. how does the price of cotton in pakistan change
1
Expert's answer
2020-07-15T10:22:03-0400

The price of cotton in Pakistan will rise, because part of the cotton from Pakistan will be sold in the world. The amount of cotton in Pakistan will decrease.


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