21 Jul WHAT WOULD BE THE EQUILIBRIUM PRICE AND QUANTITY IN EACH COUNTRY IN A WORLD WITHOUT TRADE?
The country of Pepperland exports steel to the Land of Submarines. Information for the supply and de Show more The country of Pepperland exports steel to the Land of Submarines. Information for the supply and demand curves in each country in a world without trade is given in the table below. What would be the equilibrium price and quantity in each country in a world without trade? How can you tell? What would be the equilibrium price and quantity in each country if trade is allowed to occur? How can you tell? Sketch two supply and demand diagrams one for each country in the situation before trade. On those diagrams show the equilibrium price and the levels of exports and imports in the world after trade. If the Land of Submarines imposes an import quota of 30 explain in general terms whether it will benefit or injure consumers and producers in each country. Does your general answer change if the Land of Submarines imposes an import quota of 70? Pepperland Land of Submarines Price Quantity demanded Quantity supplied Quantity demanded Quantity supplied 60 230 180 430 310 70 200 200 420 330 80 170 220 410 360 90 150 240 400 400 100 140 250 390 440 Show less
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