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Figure 9-10. The figure applies to Mexico and the good is rifles. Refer to ...

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Figure 9-10. The figure applies to Mexico and the good is rifles.A graph of price, P, versus quantity, Q, shows a supply curve, Domestic Supply, rising linearly, starting at a point above the origin on the vertical axis, and a demand curve, Domestic Demand, descending linearly from P subscript 2. The curves intersect at (Q subscript 0, P subscript 0). A horizontal line, World Price, extends from P subscript 1. A vertical line extends from Q subscript 1 to P subscript 1. A vertical line extends from Q subscript 2 to P subscript 1.

Refer to Figure 9-10. When trade takes place, the quantity Q2 - Q1 is
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