The demand function for smart phones in a nation is Q=800-5P while the supply functions is Q=-10+5P. Suppose the world price for a smart phone is $100 and the nations begin to trade with othes: a. Determine the quantity imported or exported. b. Determine the consumer surplus before and after trade. c. Determine the producer surplus before and after trade. Determine the net gain or loss from trade. d.

The demand function for smart phones in a nation is Q=800-5P while the supply functions is Q=-10+5P. Suppose the world price for a smart phone is $100 and the nations begin to trade with othes: a. Determine the quantity imported or exported. b. Determine the consumer surplus before and after trade. c. Determine the producer surplus before and after trade. Determine the net gain or loss from trade. d.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section9.2: The Winners And Losers From Trade

Problem 2QQ

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