Question: Assume that both the U S and Canadian demand curves

Assume that both the U. S. and Canadian demand curves for lumber are linear. The Canadian demand curve lies inside the U. S. curve (the Canadian demand curve hits the axes at a lower price and a lower quantity than the U. S. curve). Draw the individual country demand curves and the aggregate demand curve for the two countries. Explain the relationship between the country and aggregate demand curves in words.

Sale on SolutionInn
  • CreatedNovember 13, 2014
  • Files Included
Post your question