Date: diagram Oh the dliagram below, O represents the quantity of crude oil and

Question

Date: diagram Oh the dliagram below, O represents the quantity of crude oil and P represents the price of crude neere14, Domestie supply World prce Domestic demand 8. Refer to Figure 9-14. The country for which the figure is drawn a. has a comparative advantage relative to other countries in the production of crude oil and it will export crude oil b. has a comparative advantage relative to other countries in the production of crude oil and it will import crude oil. crude oil. crude oil c. has a comparative disadvantage relative to other countries in the production of crude oil and it will exp d. has a comparative disadvantage relative to other countries in the production of crude oil and it will im

Explanation / Answer

A country will always have comparative advantage when world price is higher than domestic equillibrium price and that goods or/and services would be exprted to the World

In our case option A is the correct response

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