(d) Suppose Krakozhia is open to trade and the world price is 150. Determine the domestic quantity supplied, domestic quantity demanded, and the quantity exported. (e) Draw a graph showing the domestic supply and demand and world price from (d). Label all axes and curves and mark out intercepts and relevant values. Shade and label areas for the consumer and producer surplus. (f) Calculate the consumer, producer, and total surplus from (d). Who is made better off and who is made worse off by trade?

(d) Suppose Krakozhia is open to trade and the world price is 150. Determine the domestic quantity supplied, domestic quantity demanded, and the quantity exported. (e) Draw a graph showing the domestic supply and demand and world price from (d). Label all axes and curves and mark out intercepts and relevant values. Shade and label areas for the consumer and producer surplus. (f) Calculate the consumer, producer, and total surplus from (d). Who is made better off and who is made worse off by trade?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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