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Two countries produce and consume T-shirts. This question is based on the international market depicted on the right. Assume transportation costs are $18. a. What
Two countries produce and consume T-shirts. This question is based on the international market depicted on the right. Assume transportation costs are $18. a. What is the price in the importing country? b. What is the price in the exporting country? c. What is the volume of trade? d. How much is spent on transporting T-shirts between the two countries? (Give a $ value.) e. How much does the exporting country gain from trade? (Give a $ value.) P ($) 26 24 22 20 18 16 14 12 10 8 6 4 2 ol 0 2 6 10 14 18 22 26 4 8 12 16 20 24 Q (K)
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