We focus on the market of a particular good in Country A. Back in 2019, there were many (domestic) suppliers from Country A and many (foreign) suppliers from Country B all serving consumers in Country A. We ignore consumers of this good in any country other than Country A. The market is assumed to be perfectly competitive. Due to a trade war, all foreign suppliers from Country B disappeared. Consequently, the market supply was halved after the trade war at every possible market price. (a) [15 marks]Comparing the competitive equilibria before and after the trade war, do you think the quantity in the new equilibrium is higher than, equal to, or lower than half the quantity in the old equilibrium? Explain your reasoning. Your answer should not be specific to any particular demand and supply curves. (Limited to 100 words.)

A competitive market for a product must be in equilibrium when:Multiple Choicespending on the product is equal to the value of the quantity supplied.the quantity of the product bought is less than the quantity of the product sold.the number of consumers equals the number of producers.there is no tendency for the price of the product to change.

A product is produced in a monopolistically competitive industry with scale economies. If thisindustry exists in two countries, and these two countries engage in trade with each other, then wewould expectA) the country with a relative abundance of the factor of production in which production of theproduct is intensive will export this product.B) the countries will trade only with other nations they are not in competition with.C) the country in which the price of the product is lower will export the product.D) neither country will export this product since there is no comparative advantage.E) each country will export different varieties of the product to the other.

As part of a trade war, country A agrees to introduces a quota on cars imported from country B. Country A can then expect Group of answer choices the price and the quality of cars imported from country B to decrease the price and the quality of cars imported from country B to increase the price of cars imported from country B to decrease, and their quality to remain the same the price of cars imported from country B to increase, and their quality to decrease

When the terms of trade risesGroup of answer choicesThe relative prices of export goods decreaseConsumers who prefer foreign goods are better off.The price index of import goods increasesThe country is unambiguously worse off

Which condition does not have to hold in a trade equilibrium of a Ricardian modelGroup of answer choicesExport from one country is equal to import to anotherCosts of imported goods are equal to costs of exported goods for both countriesReal wages are equalized in two countriesWorld price lies between autarky prices in both countries