Q1 portland and aleland are two identical countries beer

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Q1. Portland and Aleland are two identical countries. Beer manufacturers in each country compete under monopolistic competition.

a. Suppose the two countries connect in trade. Conclude the impact of free trade on consumers in Portland.

b. How does trade affect the productivity of surviving domestic producers in Portland?

Q2. Explain how the indifference curve and budget line apparatus are used to derive a consumer's demand curve. For a demand curve, certain things are held steady. Explain what are they also how does this approach hold them constant?

Reference no: EM13353853

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