B. Now consider demand and supply functions xd 1 1p2 5 1A 2 p2/a and xs 1

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B. Now consider demand and supply functions xd 1

1p2 5 1A 2 p2/a and xs 1

1p2 5 1B 1 p2/b for country 1 and xd 2

1p2 5 1C 2 p2/g and xs 2

1p2 5 1D 1 p2/d for country 2 (as in part B of the text).

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