Question 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? McGrawHillMacro- International TradeEconomicsMentorDomestic Market: No TradeIf the world price is greater than $120, does this create ashortage or surplus of contact lenses in the domesticmarket?No International TradeJulio240200 -It creates a surplus - the domestic quantity suppliedwill be greater than the domestic quantity demanded.160 -120 -80-40Vivan40120160200240That is correct!o Quantity Supplied - Quantity DemandedDomestic MarketPriceQuantity SuppliedQuantity DemandedНаpрy240EconomicsMentor20202204040200If international trade is possible, what will happen to thesurplus of contact lenses?60601808080160Julio10010014012012012014014010016016080The domestic surplus will be exported and sold in the international market.18018060The surplus will require that our domestic market import contact lenses from the20020040international market.22022020240240

XH5GDD The Asker · Economics

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?

Transcribed Image Text: McGrawHillMacro- International TradeEconomicsMentorDomestic Market: No TradeIf the world price is greater than $120, does this create ashortage or surplus of contact lenses in the domesticmarket?No International TradeJulio240200 -It creates a surplus - the domestic quantity suppliedwill be greater than the domestic quantity demanded.160 -120 -80-40Vivan40120160200240That is correct!o Quantity Supplied - Quantity DemandedDomestic MarketPriceQuantity SuppliedQuantity DemandedНаpрy240EconomicsMentor20202204040200If international trade is possible, what will happen to thesurplus of contact lenses?60601808080160Julio10010014012012012014014010016016080The domestic surplus will be exported and sold in the international market.18018060The surplus will require that our domestic market import contact lenses from the20020040international market.22022020240240
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Transcribed Image Text: McGrawHillMacro- International TradeEconomicsMentorDomestic Market: No TradeIf the world price is greater than $120, does this create ashortage or surplus of contact lenses in the domesticmarket?No International TradeJulio240200 -It creates a surplus - the domestic quantity suppliedwill be greater than the domestic quantity demanded.160 -120 -80-40Vivan40120160200240That is correct!o Quantity Supplied - Quantity DemandedDomestic MarketPriceQuantity SuppliedQuantity DemandedНаpрy240EconomicsMentor20202204040200If international trade is possible, what will happen to thesurplus of contact lenses?60601808080160Julio10010014012012012014014010016016080The domestic surplus will be exported and sold in the international market.18018060The surplus will require that our domestic market import contact lenses from the20020040international market.22022020240240