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Can you please check my answer to this question? Suppose that, in the market for apples, domestic demand is given by P = 30 -
Can you please check my answer to this question?
Suppose that, in the market for apples, domestic demand is given by P = 30 - 0.5Q, and domestic supply is given by P = 1.5Q, where Q represents tonnes of apples. Further suppose that the world price of apples is $6 per tonne.
A.On a graph, illustrate the market equilibrium if the market is open to international trade. Calculate the gains from trade in this market and label the corresponding area on the graph.
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