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    Principles of Economics Study Set 8
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    Exam 9: Application: International Trade
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    Suppose the World Price of Coffee Is $3 Per Pound
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Suppose the World Price of Coffee Is $3 Per Pound

Question 106

Question 106

Short Answer

Suppose the world price of coffee is $3 per pound and Brazil's domestic price of coffee without trade is $2 per pound. If Brazil allows free trade, will Brazil be an importer or an exporter of coffee?

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