3a. Draw a graph depicting an offer curve for a large country.Label each axis, and explain the...
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3a. Draw a graph depicting an offer curve for a large country.Label each axis, and explain the intuition for the appearance of the offer curve. (Be sure to identify the good that the country is exporting and the good that it is importing.) (10 points)
3b. Using a graph like that in part a, draw a graph of two large countries' offer curves.Label the free trade equilibrium point with the letter "A".Now sketch the effect of a trade war in which both large countries imposed tariffs on the other country's exports.Label the new equilibrium with the letter "B". (10 points)
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