Using supply and demand analysis for manufactures and assuming Canada is a high priced producer compared to the US, draw the supply and demand curves for Canada and the US as well as the import demand and supply curves assuming free trade.
Luxembourg imports a good at a world price of $10 each. The domestic supply curve is S = 50 +*where P is in Ecu and lEcu = $1. Demand curve is D = 400 - 1OP. Draw demand and supply curves for this good and indicate how much is imported.