Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Given the information for Forgien and Domestic, please help find #11, 12 and 13. Thank you.

Transcribed Image Text:11. For Domestic and Foreign what are the new values of
Cs', =
CS'p=
PS', =
PS'p=
W'p=
Now for the overall effects of opening to trade. This is about change so take the open economy results and subtract the autarkic results
to get the change (4).
12. (For Domestic and Foreign:
A CSn=
A CS
A PSon=
A PS =
A M
13 What are AP and %AP, where the % is of the Free Trade Price?
AR
ARu
%AR (hm fr ade priar-
%AR non thee trade price=

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