Let FOREIGN demand and supply curves be: Demand P = 100 - Q and Supply P = 1⁄4 Q

Let Home demand and supply curves be: Demand P = 100 - 1/3 Q and Supply P = 2/3 Q

Who would be the exporter?

Find the Excess Supply Curve. Show it on a graph.

Find the Excess Demand Curve. Show it on a graph.

Determine the equilibrium world price and quantity of imports/exports.

Show that both countries gain from trade.

Not let the FOREIGN supply curve change to P = 1/8 Q

Show how this change in supply alters equilibrium world price

What happens to import/exports.

How does the change in supply affect home and foreign (given they were already in free trade)?