18. What is the net welfare gain from trade to the economies of both countries together? (hint: the formula for calculating the area of a triangle is 1/2 times the base times the height) O 3 O 6 13.5 O 33.75
18. What is the net welfare gain from trade to the economies of both countries together? (hint: the formula for calculating the area of a triangle is 1/2 times the base times the height) O 3 O 6 13.5 O 33.75
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter34: Globalization And Protectionism
Section: Chapter Questions
Problem 37RQ: What are some ways that governments can help people who lose from trade?
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Question
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18. What is the net welfare gain from trade to the economies of both countries together? (hint: the formula for calculating the area of a triangle is 1/2 times the base times
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6.
9.
13.5
33.75
P.
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Transcribed Image Text:International market
Country 2
Country 1
s2
S2
25
25
25
20
20
20
S1 15
15
15
s1
EIP
IP
IP
10
10
10
5
D2
d2
d1 Q
SD1
0-
0 3 69 1215182124 O
0 3 6 9 1215182124Q
0369 1215182124
Q
18. What is the net welfare gain from trade to the economies of both countries together? (hint: the formula for calculating the area of a triangle is 1/2 times the base times
the height)
6.
9.
13.5
33.75
P.
P.
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