1. 2. 3. If no trade occurs between the markets, what are the equilibrium values of D₁, S1, P1, D2, S2, and P2? Solve algebraically. If the cost of transportation between the two markets is PT = 2, what would be the equilibrium values of D₁, S₁, P1, D2, S2, P2, QT, and PT? Solve algebraically. Show the above situation graphically, both with and without trade. Please label everything.
1. 2. 3. If no trade occurs between the markets, what are the equilibrium values of D₁, S1, P1, D2, S2, and P2? Solve algebraically. If the cost of transportation between the two markets is PT = 2, what would be the equilibrium values of D₁, S₁, P1, D2, S2, P2, QT, and PT? Solve algebraically. Show the above situation graphically, both with and without trade. Please label everything.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 25P
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