1. Given the demand and supply for an exporting country, please answer the questions below: $ P W Po B C exports domestic supply world price domestic demand Where Pw is the world price, PO is domestic equilibrium price. a. Find the total surplus (welfare) before trade? b. Find the total surplus after free trade? Please show the gains from trade. 3
1. Given the demand and supply for an exporting country, please answer the questions below: $ P W Po B C exports domestic supply world price domestic demand Where Pw is the world price, PO is domestic equilibrium price. a. Find the total surplus (welfare) before trade? b. Find the total surplus after free trade? Please show the gains from trade. 3
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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