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I'm having a bit of hard time understanding this question. (2) [Effects of international trade: 44 pts] Now suppose the United States and Europe engage

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I'm having a bit of hard time understanding this question.

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(2) [Effects of international trade: 44 pts] Now suppose the United States and Europe engage in international trade in wheat. a. [24 pts] Using the graphs above, find the quantity demanded and the quantity supplied in each country. Then compute the combined quantity demanded and the combined quantity supplied. United States Europe Combined Market Price Quantity Quantity Quantity Quantity Quantity Quantity demanded supplied demanded supplied demanded supplied $2 million million million million million million $3 million million million million million million $4 million million million million million million $5 million million million million million million $6 million million million million million million $7 million million million million million million b. [10 pts] Use your calculations to plot and label carefully the combined demand and supply curves. Note: They should be smooth curves, not stairsteps, because the quantities are in millions. $7 Combined Market $6 $5 $4 Price $3 $2 $1 $0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Quantity (millions) c. [2 pts] What is the international equilibrium price (or world price)? $ d. [2 pts] Did the price of wheat in the U.S. increase or decrease as a result of international trade? e. [2 pts] Did the price of wheat in Europe increase or decrease as a result of international trade? f. [2 pts] Which country will now export wheat? g. [2 pts] How much will it export? million

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