Question: Assume that there are only two countries in the world: Country A and B . Country A's demand and supply curves for wheat are;

Assume that there are only two countries in the world: Country A and B\ . Country A's demand and supply curves for wheat are; QDA 12-p, Qs^ =3p QDB 10-2p, Qs = 8+2p. = a) Find the autarky price in country A. b) Find the autarky price in country B. c) Determine which country is the importer and which country is the exporter. Explain. d) Derive the export supply and import demand curves. Find the equilibrium world price of wheat under free trade. e) Now assume Country A imposes an import tariff of 1 dollar per unit imported. Determine the new domestic prices for wheat in country A and in country B. Answer using graphs as well

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