Suppose country a is a small country which cannot influence


For a particular product, Country A's supply and demand are represented by the following functions: 

Qs = 2 + P;  Qd = 52 - P

Suppose Country A is a small country (which cannot influence the world price). In free trade, Country C can export the product for $10 (PC = $10) and Country B for $15 (PB = $15).

Situation 1 - free trade: If there is free trade, where does Country A import (from Country B or Country C)? How much does it import?

Solution Preview :

Prepared by a verified Expert
Business Economics: Suppose country a is a small country which cannot influence
Reference No:- TGS02402660

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)