What is the predicted volume of trade between Alada and Belam? $3,000. (Enter your response as an integer.) If Canson has the same trading volume with Alada as does Belam, Canson's GDP must be $ (Enter your response as an integer.)
What is the predicted volume of trade between Alada and Belam? $3,000. (Enter your response as an integer.) If Canson has the same trading volume with Alada as does Belam, Canson's GDP must be $ (Enter your response as an integer.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Use the following expression for the gravity model and the table's hypothetical data to answer the questions below:
Y₁xYj
Country
Alada
Belam
Canson
T₁ = 0.001 x D₁
GDP
$15,000
$20,000
$
Distance from:
Alada
100 km
100 km
Distance from:
Belam
100 km
100 km
What is the predicted volume of trade between Alada and Belam? $3,000. (Enter your response as an integer.)
If Canson has the same trading volume with Alada as does Belam, Canson's GDP must be $ (Enter your response as an integer.)
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