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Answer to Question #126315 in Microeconomics for Hamza
Question #126315
suppose that the world price of cotton is $250 a ton, pakistan does not trade internationally and the equilibeium price of cotton in pakistan is $150 a ton .pakistan begins to trade internationally. how does the price of cotton in pakistan change
Expert's answer
The price of cotton in Pakistan will rise, because part of the cotton from Pakistan will be sold in the world. The amount of cotton in Pakistan will decrease.
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