Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Given the supplied information for Domestic and Forgien, please help find #3, 4 and 5. Thank you.

Transcribed Image Text:Domestic:
Foreign:
Qa. D = 42 - 2"P
Qs. D=-2 + 2*P
QaF = 72 - 3*P
Q. F = -4 + P

Transcribed Image Text:3. Find the Excess Demand and Supply curves for Domestic and Foreign
Qp, Esc, Dam=
Os, Es, Dam=
Qo, Excan, Fur=
Os. Escar, Far
On the graph below, accurately draw and fully label the zxes, excess demands, excess supplies, equilibrium trade volume and
equilibrium price in the global market.
4.
Global Market
$28
$24
$20
$16
$12
$8
$4
$0
16
24
32
40
48
56
64
72
80
Quantity
5. Find the global equilibrium price, P'e: and Free Trade Qu and Qs in both countries.
Q'n
Q'n Faniun
Os Deaie=
Q's Faneian
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