Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

The diagram indicates that a country can produce a product for less than the world price. What happens if it participates in international trade?

  • ADomestic consumers will experience a fall in consumer surplus of RVT.
  • BDomestic output of OY will be exported.
  • CDomestic producers will gain an increase in revenue of PP1TV.
  • DRevenue from exports will be XRTZ from the product.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI