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Suppose that in a small open economy, the shoe demand and supply equations are: P = 168-4 D P = 24+2 S On the other

Suppose that in a small open economy, the shoe demand and supply equations are:

P = 168-4D

P = 24+2S

On the other hand, suppose that in a big open economy, the shoe demand and supply equations are:

P = 360- 6D

P = 40 + 2S

Calculate the amount of shoe production and consumption in small and large countries where the free trade price (PFT) is equal to the arithmetic average of the domestic prices of these two countries in the case of autarky.

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