Question
In a country called The Gambia, the equation of the domestic demand curve for wheat is, QD = 200 -2P, where QD represents the domestic
In a country called The Gambia, the equation of the domestic demand curve for wheat is, QD = 200 -2P, where QD represents the domestic quantity of Wheat demanded, in tons, and P represents the price of a ton of Wheat. For The Gambia equation of the domestic supply curve for Wheat is, 60 + 3P, where QS represents the domestic quantity of Wheat supplied, in tons, and again P represents the price of a ton of wheat. If the Gambia prohibits international trade in wheat, then the equilibrium price of a ton of wheat is $52and quantity is 96 tons.
Suppose the world price of wheat is $45 and The Gambia is now open for international trade. Then Gambia's consumers' demand is?
and producer's supply?
Suppose the world price of wheat is $45. Then Gambia's gains from international trade in wheat amount to?
Suppose the world price of wheat is $45. Then, relative to the no-trade situation, international trade in wheat, benefits Gambian consume
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