DETERMINATIVES OF DEMAND AND SUPPLY 734

What are the determinatives of demand for a product? What are the determinatives of supply of a product?

Adam Smith developed the theory of absolute advantage. Can any country really have an absolute advantage over other countries?

Explain what is wrong with this statement: “Opening trade drives prices of goods and costs of factors into equality between countries, but once prices and costs equalize, there is no longer any reason to trade.”