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Consider a twonation world consisting of the United States and Mexico, which both produce strawberries. Assume there are no trade barriers or international transportation costs.
Consider a twonation world consisting of the United States and Mexico, which both produce strawberries. Assume there are no trade barriers or international transportation costs. The tables represent the markets for strawberries in the United States and Mexico. Mexican prices have been converted to U.S. dollars.Price per pound Quantity supplied (in millions) Quantity demanded (in millions) $2 300 500 $3 350 450 $4 400 400 $5 450 350 $6 500 300 $7 550 250 $8 600 200 Mexican market for strawberries Price per pound Quantity supplied (in millions) Quantity demanded (in millions) $2 400 800 $3 450 750 $4 500 700 $5 550 650 $6 600 600 $7 650 550 $8 700 500
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