Use a simple partial equilibrium supply and demand model, Microeconomics

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Use a simple partial equilibrium supply and demand model

Use a simple partial equilibrium supply and demand model of international trade to explain and illustrate how transportation costs affect the volume and gains from trade. Then describe in some detail how changes in transportation costs over the past two centuries have affected international trade. Does the simple supply and demand model of trade accurately describe what happened to international trade as transport costs changed?

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Microeconomics: Use a simple partial equilibrium supply and demand model

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