supply and import demand curves for TV sets
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supply and import demand curves for TV sets
- Consider two countries, Canada and Mexico, with the following domestic demand and supply curves and equilibrium points for TV set. Answer the following questions.
Canada
200
450
300
600
Mexico
250
- Draw export supply and import demand curves for TV sets in the international market.
- What is the price range within which the international equilibrium price of TV falls?
- If the international market equilibrium price is $299, how many TV sets will be supplied by Canadian producers?
- If the world price is $400, which country gains the most after trade? Explain why.
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