(a) What would be the equilibrium-relative commodity price of wheat if DW(US+UK) shifted up by one-third in...

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(a) What would be the equilibrium-relative commodity price of wheat if DW(US+UK) shifted up by one-third in the left panel of Figure 2.3? How much wheat and cloth would the United States and the United Kingdom then produce?
(b) What does the answer to part (a) imply for DC(UK+US) in the right panel of Figure 2.3?
Figure 2.3
(a) What would be the equilibrium-relative commodity price of wheat
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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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