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How does an increase in the available supply (e.g. from 10 units to 12 units of tea) change the appearance of Figure 2.1, and how

How does an increase in the available supply (e.g. from 10 units to 12 units of tea) change the appearance of Figure 2.1, and how does this change in supply alter the equilibrium quantities and prices in the two countries?

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.44 II I: tea =T_________'__\\___ Figure 2.1: Horizontal axis shows tea. said in China. Solid line shows inverse demand for tea in China. Dashed line shows inverse demand for tea in US, as a function of sales in China. Dotted line shows price received by Chinese exporter with 30% transportation costs (b = 0.3)

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