Hint Check Answer Question 18 of 19 The newly elected president of Sabora decide

Question

Hint Check Answer Question 18 of 19 The newly elected president of Sabora decides to allow international trade for the first time in Sabora's existence. They will begin trade next year. Saboran spear-makers will happily engage in trade. Assume there is free trade, and sell all the spears they make. Note that not all statements will be used. What will happen to the quantity and price of Sabora's spears next year? Answer Bank There will be movement along Sabora's supply curve. A greater quantity of Sabora's spears are supplied at a higher price. VScroll Sabora's supply curve will shift to the left. A greater quantity of Sabora's spears are supplied at the same price. Sabora's supply curve will shift to the right. Sabora's spear prices are lower for the same quantity

Explanation / Answer

It has been stated that as Sabora enters the international market, Saboran spear-makers are happy to engage in trade.

This means that world price of spears is greater than the domestic price of spears in Sabora.

This implies that Sabora will be exporting the spears at the higher price after entering into the international trade.

Change in price leads to the movement along the supply curve.

So,

There will be movement along the Sabora's supply curve.

A greater quantity of sabora's spears are supplied at a higher price.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.