Answer
After the economy opens up for trade the market price is $40
P=$40 then
Qd=20 units and Qs=60 units
Qs>Qd so the economy exports
Export =Qs-Qd=60-20=40 units
Option A
nomic MyCO Cours The figure shows the demand curve, D, and the supply curve, S, for...
a) home's demand curve for wheat is: D=100 - 20P its supply curve is: S= 20 + 20P. Derive and graph Home's import demand schedule. what would the price of wheat be in the absence of trade? b) Now add Foreign, which has a demand curve D* = 80 - 20P, and a supply curve S* = 40 + 20P. i) Derive and graph Foreign's export supply curve and find the price of wheat that would prevail in Foreign in...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...