Derive and graph foreign export supply curve

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Reference no: EM13984284

After question one add Foreign.

Demand curve= D*= 80-20P

Supply Curve S*=40+20P

A. Derive and graph foreign export supply curve and find the price that would prevail in Foreign in the absence of trade.

B. Allow Foreign and Home to trade with each other. Graph equilibrium under free trade. What is the world price and the volume of trade?

Reference no: EM13984284

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