If there is free trade

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Reference no: EM131602599

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?

Reference no: EM131602599

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