Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Chapter 18, Problem 8CQ
(a)
To determine
The purchase of Country A’s products instead of imported products and the economic impact.
(b)
To determine
The purchase of domestic products instead of imported economic impact in State C .
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There are two countries Home and Foreign.
Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit
labor requirement in apple production is 3, while in banana production it is 2.
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1.) Using the 3-point curved line drawing tool, draw the relative demand curve on the graph to the
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2) Using the point drawing tool, indicate the new equilibrium relative price of apples, Label this
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Carefully follow the instructions above and only draw the required objects.
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Chapter 18 Solutions
Economics: Private and Public Choice
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