Illustrate international excess supply and demand


Problem

Suppose US and Venezuelan demands for steel are approximately the same. The domestic and foreign autarky prices are $500 and 22,500 bolivars respectively, and the exchange rate is bol/$ = 45. Determine the likely exporter. Illustrate international excess supply and demand when the international price is $475, the volume of trade 100, US production 100, and Venezuelan production 300. Find consumption in each nation.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: Illustrate international excess supply and demand
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