Graph 9-2
This graph refers to the market for saddles in Argentina.
-According to Graph 9-2, the price and quantity demanded of saddles in Argentina after trade would be:
A)P₁, Q₂
B)P₁, Q₁
C)P₀, q₀
D)P₀, Q₁

Question

Graph 9-2
This graph refers to the market for saddles in Argentina. 
-According to Graph 9-2, the price and quantity demanded of saddles in Argentina after trade would be:
A)P₁, Q₂ 
B)P₁, Q₁ 
C)P₀, q₀ 
D)P₀, Q₁

Quizplus · Accepted Answer

After trade, the price of saddles in Argentina would be P₁ and the quantity demanded would be Q₁, as shown by the intersection of the demand and supply curves. This is because trade allows Argentina to access lower-priced saddles from abroad, which increases the quantity demanded at any given price.

Graph 9-2 This Graph Refers to the Market for Saddles in Argentina