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Before 193-9, East lGermany had EDD farmers of tomatoes and West Germany had Sill} farmers of tomatoes. The cost snuenu'e from the East German farmers
Before 193-9, East lGermany had EDD farmers of tomatoes and West Germany had Sill} farmers of tomatoes. The cost snuenu'e from the East German farmers was given by ICE[q] = q: + 2t] and the 2 cost structure from the West German farmers was [Rpm] = If {(2 + SD, where q is the number of tomatoes produced. If the market price in West Genuany was 5 and the market price in East Germany was 3, answer the following questions: a} Calculate the supply curve of tomatoes in each country, and interpret your answers {5 points} b] What is the shortrun market equilibrium in each country and interpret your answers {5 points} c} After the fall ofthe Berlin wall, what would you expect to happen in the long run? (5 points}
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