if an autarky decides to trade and begins to import, a lower world price would push the domestic quantity demanded (up/down) and the domestic quantity supplied (up/down).

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06-12-2022
Business

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if an autarky decides to trade and begins to import, a lower world price would push the domestic quantity demanded (up/down) and the domestic quantity supplied (up/down).

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aamirmajeed5100 aamirmajeed5100 · Answer 1 · 2022-12-13T09:11:03-05:00

If an autarky decides to trade and begins to import, a lower world price would push the domestic quantity demanded down and the domestic quantity supplied down.

When an autarky decides to trade and begins to import, a lower world price will lead to an increase in the number of imports demanded, as domestic consumers will be able to obtain more imported goods at a lower cost.

At the same time, a lower world price will lead to a decrease in the quantity of domestically produced goods supplied, as domestic producers will no longer be able to compete with the lower-priced imported goods.

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