The nation of textilia does not allow imports of clothing. in its equilibrium without trade, a t-shirt costs $24, and the equilibrium quantity is 4 million t-shirts. one day, after reading adam smith's the wealth of nations while on vacation, the president decides to open the textilian market to international trade. the market price of a t-shirt falls to the world price of $16. the number of t-shirts consumed in textilia rises to 8 million, while the number of t-shirts produced declines to 2 million.
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The nation of textilia does not allow imports of clothing. in its equilibrium without trade, a t-shi...
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