Now suppose the U.S. opens to trade in computers. Furthermore, suppose the world price of computers is $900/unit. Will the U.S. become an importer or an exporter of computers?
Added by Asunci-N B.
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S. If the world price is lower than the domestic price, the U.S. will become an importer of computers. If the world price is higher than the domestic price, the U.S. will become an exporter of computers. Show more…
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