Question: Using a pair of graphs, illustrate a situation in which the US would be an importer of goods andidentify the equilibrium (price, US QD &

Using a pair of graphs, illustrate a situation in which the US would be an importer of goods andidentify the equilibrium (price, US QD & QS, imports/exports, and other country’s QS & QD). Maintainthe assumption that there are only two countries so that each country’s supply and demand affects theother. What would happen in the international trade model you just outlined if there were positivetransportation costs for the other country? (You do not need to draw this, just carefully describein words.) What would happen to the equilibrium?

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