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Question: A semiconductor is a key component in your laptop, cellphone, and iPad. The table provides information about the market for semiconductors in Canada.
Price Quantity demanded Quantity supplied (dollars per unit) (billions of units per year)
10 25 0
12 20 20
14 15 40
16 10 60
18 5 80
20 0 100
Producers of semiconductors can get $18 a unit on the world market.
a. With no international trade, what would be the price of a semiconductor and how many semiconductors a year would be bought and sold in Canada?
b. Does Canada have a comparative advantage in producing semiconductors?
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