Figure 9-14.On the diagram below,Q represents the quantity of crude oil and P represents the price of crude oil.
-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.
C)has a comparative disadvantage relative to other countries in the production of crude oil and it will export crude oil.
D)has a comparative disadvantage relative to other countries in the production of crude oil and it will import crude oil.

Question

Figure 9-14.On the diagram below,Q represents the quantity of crude oil and P represents the price of crude oil. 
-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. 
C)has a comparative disadvantage relative to other countries in the production of crude oil and it will export crude oil. 
D)has a comparative disadvantage relative to other countries in the production of crude oil and it will import crude oil.

Quizplus · Accepted Answer

The figure shows a downward sloping demand curve, indicating that as the price of crude oil decreases, quantity demanded increases. This suggests that the country has a comparative advantage in producing crude oil, as it can produce it at a lower cost than other countries. Therefore, the country can export crude oil and benefit from its comparative advantage.