Leonom 08 353 The Fearuary 27, 2023. 108 bonus 2: submitted in class by That T. November 2922 the U.S. excores of wize were $110 million and U.S. imports wore $610 million. Calen ale Ice index of ir ra industry trade lor wine. 2. Use the gravity nocel to answer question ?. Assume The.. Lee exponent of the distance war ably is count to 1.25 and Cha. trade between cou tries A and 3 is equal to $100 billion. Assume that country . is the same distance from country A as country B, but that country ('A CCH 's twine as large as BIG COP. What is the amount. of trade between countries A and C: b. Assume that country D has the same GDP as country 3, but that country D is -wice as far from country A as is country H. What wil be the amount of trade between countries A ane D. C. Expose country 3 is both twice as large as 3 and twice as far away from A as B. Will brady between countries A and b be Larger, anA ler or the name as trade between countries A and S? Explain. 3. Assume the model of monopolistic competition and economies of Marginal costs are equal to $10 and fixed costs are equa. to $509. 3. A firm in the industry Is producing 20 and selling bea sulout for $42. "ims he enzoring or exiting the industry? Why? Assume that is equilibrium before trade, there are 20 films, cach firm producing 20 units. What will be the sola out put a the industry and the price of output? C. Assume that in the after trade equilibrium, there are 1: firms, each producing 50 un's. What. will be are lokal outout of The industry and the pace of output? 4. Use the tollowing informi on on the supply and demand for oil In I'm hypothetical country Economica to answer the questions below. Assume that the denand and supply curves are li ear. possible to answer the questions without drawing a graph, bu= a graph will likely be helofil. You may use the template at the end of the problem or araw your own grep". Jomestic Domestic Price (s) Denand Supply 20 20 - 20 10 60 60 EC 100 120 120 120