VII FREE TRADE UNDER INCREASING COST CONDITION

(with and without Transportation costs)

The table below illustrates the supply and demand schedules for cheese (5 kilograms box) in Switzerland and France.

SWITZERLAND	FRANCE
Price in CHF (Swiss Francs)	Quantity supplied	Quantity Demanded	Price in CHF (Swiss Francs)	Quantity supplied	Quantity Demanded
0	0	6,000	0	-	9,000
10	1,000	5,000	10	-	8,000
20	2,000	4,000	20	-	7,000
30	3,000	3,000	30	0	6,000
40	4,000	2,000	40	1,000	5,000
50	5,000	1,000	50	2,000	4,000
60	6,000	0	60	3,000	3,000
70	7,000	-	70	4,000	2,000
80	8,000	-	80	5,000	1,000
90	9,000	-	90	6,000	0

1. How kilograms of cheese are traded at the free trade price for both the countries?
2. How many kilograms of cheese are produced and consumed in each country with free tradeWith transportation costs of CHF 10.00 per kilogram cheese. Suppose the cost of transporting each kilogram of cheese from Switzerland to France is CHF is 10.00.
3. With trade, what is the impact of the transportation cost on the price of cheese per kilogram in both the countries?
4. How many kilograms of cheese will each country produce and consume?
5. What is be the volume of trade for both the countries?

Please show me how to calculate?