11. (This is a harder question.) Suppose that the Home country is much larger than the Foreign...

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11. (This is a harder question.) Suppose that the Home country is much larger than the Foreign country. For example, suppose we double the number of workers at Home from 25 to 50.

Then Home is willing to export up to 100 bushels of wheat at its no-trade price of PW /PC = rather than 50 bushels of wheat as shown in Figure 2-11. In the following, we draw a new version of Figure 2-11, with the larger Home country.

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International Economics

ISBN: 9781429231183

2nd Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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