Calculate equilibrium price and quantity for each country

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Reference no: EM13235034

Suppose we have two countries, the United States and Mexico, and one good-computers. Assume the following for each country:
United States: Qd = 5000 - P and Qs = 2P - 1000
Mexico: Qd = 5000 - 2P and Qs = P - 2000

Calculate the equilibrium price and quantity for each country in the absence of trade, and then calculate the world price, the amount traded between the countries, and who is importing and exporting.

Reference no: EM13235034

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