What is the difference between the principles of absolute and comparative advantage? Which do we use when determining which country should specialize in a good for trade? What is the fundamental economic concept at play behind this principle?
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Suppose you have a market for sushi which is currently in equilibrium. Thinking of the supply and demand graph for this market, what would have to happen to cause both the equilibrium quantity of sushi in this market to rise and the equilibrium price of sushi in this market to fall? Is this even something that could happen?
In your answer, please pay attention to and describe what would have to happen to the supply and demand. (You may of course elaborate with any hypothetical “real life” reasons for any changes in the graph too.)
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