Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of meekers is $23. Suppose that the world price of meekers is $22. Assume that Meekertown is too small to influence the world price of meekers once it enters the international market. If Meekertown allows free trade, then it will_____ meekers.

Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of meekers is $23. Suppose that the world price of meekers is $22. Assume that Meekertown is too small to influence the world price of meekers once it enters the international market. Meekertownian consumers were worse off without free trade than they are with it.

Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of meekers is $23. Suppose that the world price of meekers is $22. Assume that Meekertown is too small to influence the world price of meekers once it enters the international market. Meekertownian producers are worse off under free trade than they were before.

When a country is too small to affect the world price, allowing free trade will always decrease total surplus in that country, regardless of whether it imports or exports as a result of international trade.

Without free trade, Rooby has market power as a local producer. Once free trade is implemented in the local economy, Rooby is no longer able to raise its prices above competitive levels. The previous scenario represents which of the following benefits of free trade?

The president of the United States argues that the government should impose a tariff on semiconductors because they are a necessary input into the production of various weapons. Free trade, she contends, would make the United States overly dependent on foreign countries for the supply of semiconductors and thus, in case of war, unable to make enough weapons to defend itself. Which of the following justifications is the president using to argue for the trade restriction on semiconductors?