Let FOREIGN demand and supply curves be: Demand P = 100 - Q and Supply P =

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Let FOREIGN demand and supply curves be: Demand P = 100 - Q and Supply P = 1⁄4 Q

Let Home demand and supply curves be: Demand P = 100 - 1/3 Q and Supply P = 2/3 Q

Who would be the exporter?

Find the Excess Supply Curve. Show it on a graph.

Find the Excess Demand Curve. Show it on a graph.

Determine the equilibrium world price and quantity of imports/exports.

Show that both countries gain from trade.

Not let the FOREIGN supply curve change to P = 1/8 Q

Show how this change in supply alters equilibrium world price

What happens to import/exports.

How does the change in supply affect home and foreign (given they were already in free trade)?

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Jul 07, 2022 04:44 AM

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Let FOREIGN demand and supply curves be: Demand P = 100 - Q and Supply P =

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Demand foreigh p 100 8 Home P 100 10 p3003 P Excess Demond MD as e 2 30 3003P3P2 p 10v p ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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