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Consider Home is a small country that produces T-shirts with the following demand and supply functions. P = 14 - Qd and P = 4
Consider Home is a small country that produces T-shirts with the following demand and supply functions.
P = 14 - Qd and P = 4 + Qs
Q. Suppose that the country (Home) engages in trade and faces the world price, Pw = $6. Graph and calculate free trade consumer and producer surplus. Does Home gain/lose from trade?
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