Instructions: Answer the following questions. Show your work or explain your reasoning. A B Country S Country S $7 60 40 D 220 200 8 70 50 9 80 60 180 160 10 70 90 100 110 pan 8 8 3 peo 11 80 140 12 90 120 13 120 100 100 14 130 110 80 15 140 120 70 Two countries produce and consume widgets: Country A and Country B. Partial supply and demand schedules for supply and demand curves are straight lines. The quantities are in millions. This problem asks you to characterize the equilibrium with trade. Assume there are no transportation costs and no a. In the international market diagram, what is the P-intercept of the Sy curve? The P-intercept of the Dm curve? W the volume of trade? b. At the equilibrium world price, how much is produced (supplied) by Country A? How much is consumed (deman or exporter? How much does Country A import or export? c. Do Country A consumers gain or lose from trade? How much? Country A producers? (Give $ values.) 15 140 0 120 70 Two countries produce and consume widgets: Country A and Country B. Partial supply and demand schedules for the two countries are given above. Note: The supply and demand curves are straight lines. The quantities are in millions. This problem asks you to characterize the equilibrium with trade. Assume there are no transportation costs and no trade barriers. a. In the international market diagram, what is the P-intercept of the Sx curve? The P-intercept of the Dm curve? What is the equilibrium world price? What is che volume of trade? o. At the equilibrium world price, how much is produced (supplied) by Country A? How much is consumed (demanded) by Country A? Is Country A an importer or exporter? How much does Country A import or export? C. Do Country A consumers gain or lose from trade? How much? Country A producers? (Give $ values.) Instructions: Answer the following questions. Show your work or explain your reasoning. A B Country S Country S $7 60 40 D 220 200 8 70 50 9 80 60 180 160 10 70 90 100 110 pan 8 8 3 peo 11 80 140 12 90 120 13 120 100 100 14 130 110 80 15 140 120 70 Two countries produce and consume widgets: Country A and Country B. Partial supply and demand schedules for supply and demand curves are straight lines. The quantities are in millions. This problem asks you to characterize the equilibrium with trade. Assume there are no transportation costs and no a. In the international market diagram, what is the P-intercept of the Sy curve? The P-intercept of the Dm curve? W the volume of trade? b. At the equilibrium world price, how much is produced (supplied) by Country A? How much is consumed (deman or exporter? How much does Country A import or export? c. Do Country A consumers gain or lose from trade? How much? Country A producers? (Give $ values.) 15 140 0 120 70 Two countries produce and consume widgets: Country A and Country B. Partial supply and demand schedules for the two countries are given above. Note: The supply and demand curves are straight lines. The quantities are in millions. This problem asks you to characterize the equilibrium with trade. Assume there are no transportation costs and no trade barriers. a. In the international market diagram, what is the P-intercept of the Sx curve? The P-intercept of the Dm curve? What is the equilibrium world price? What is che volume of trade? o. At the equilibrium world price, how much is produced (supplied) by Country A? How much is consumed (demanded) by Country A? Is Country A an importer or exporter? How much does Country A import or export? C. Do Country A consumers gain or lose from trade? How much? Country A producers? (Give $ values.)