Question
Consider a two - country world, Zambia and DRC . Each country has an upward - sloping national supply curve for soyabeans and a downward
Consider a twocountry world, Zambia and DRC Each country has an upwardsloping national supply curve for soyabeans and a downwardsloping national demand curve for soyabeans. With no trade in soyabean, the notrade equilibrium price for soyabeans in Zambia would be $ per kilogram and the notrade equilibrium price for soyabeans in the DRC would be $ per kilogram. If the countries allow free trade in soyabeans, explain why $ per kilogram cannot be the freetrade equilibrium world price for soyabeans. In your answer, draw and refer to graphs of supply and demand curves for the two national markets.
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