S/M 15 10 100 200 300 M V/M 500 250 D' 100 200 300 M Figure 1.4 The International Market for Manufactures (M) Free trade takes place where the excess demand from one country equals the excess supply from the other country. At a price of $5/M, excess demand of 200 from the home country equals excess supply of 200 from the foreign country, the foreign country will export 200 units of manufactures to the home country.

S/M 15 10 100 200 300 M V/M 500 250 D' 100 200 300 M Figure 1.4 The International Market for Manufactures (M) Free trade takes place where the excess demand from one country equals the excess supply from the other country. At a price of $5/M, excess demand of 200 from the home country equals excess supply of 200 from the foreign country, the foreign country will export 200 units of manufactures to the home country.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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