Question 22 After joining the union, at what price could it now import the product?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Use graph and answer both the questions I will give you Upvote

 

D
Question 22
After joining the union, at what price could it now import the product?
O P1
O P2
O Pa
O P4
Question 27
What areas represent the net gain or loss from the trade diversion?
3+4-8+ 15
O 2 + 4 -8 - 14
O 6+7+8- 14
O 12 + 13 + 14 - 15
Transcribed Image Text:D Question 22 After joining the union, at what price could it now import the product? O P1 O P2 O Pa O P4 Question 27 What areas represent the net gain or loss from the trade diversion? 3+4-8+ 15 O 2 + 4 -8 - 14 O 6+7+8- 14 O 12 + 13 + 14 - 15
The figure illustrates trade diversion.
A country's demand for and supply of an
importable good
P.
Sdom
8
Sw+t
P4
P3
1
213
9.
Sunion
P2
10
P1
12: 13 14 15 16
Sw
11
Ddom
Q, Q, Qa Q4 Qs QA Q7
Transcribed Image Text:The figure illustrates trade diversion. A country's demand for and supply of an importable good P. Sdom 8 Sw+t P4 P3 1 213 9. Sunion P2 10 P1 12: 13 14 15 16 Sw 11 Ddom Q, Q, Qa Q4 Qs QA Q7
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