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Consider a world consisting of two countries, Ghana and Canada. Suppose the domestic demand and-supply curves for bicycle in Ghana are given by the following

Consider a world consisting of two countries, Ghana and Canada. Suppose the domestic demand and-supply curves for bicycle in Ghana are given by the following equations:

Demand: P = 80 - 2Q

Supply: P =5 + 3Q

(a) Assume that the price of bicycles in Canada is 20% less than that of Ghana. If free trade according to comparative advantage were allowed, what will be the price of bicycles in Ghana? How much of bicycles would be produced in Ghana? How much will be consumed in Ghana? And how much will be imported from Canada

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