If international trade is possible, what will happen to the surplus of contact lenses?
PS- the graph shown is for contact lenses.
Idk how to go about this problem?
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Step 1With no trade quantity supplied is equal to quantity demanded at a price of $120. Step 2 If International trade is hossikle & the world hrice is above $120, there would be surblus i.e., Quantity supplied will be more in comparison to domestic Quantity demandedIn this case this excess surhlus will be exhorted i.e., sold in the international market. ...