review_Ch2 - As a result of free trade, consumers in the...

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Econ 306 Chapter 2 review questions 1. Using the figure above determine the value of the following for the importing country: Producer surplus in before and after trade Consumer surplus before and after trade Net changes in producer and consumer surplus Net changes in total surplus 2. Determine the following for the exporting country: Producer surplus before and after trade Consumer surplus before and after trade Net changes in producer and consumer surplus Net changes in total surplus 3. True-false-uncertain. Explain . As a result of free trade, the price of the imported product falls compared to pre-trade levels. As a result of free trade, the price of the exported product falls compared to pre-trade levels.
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Unformatted text preview: As a result of free trade, consumers in the exporting country are better-off compared to pre-trade. As a result of free trade, producers in the importing country are worse-off compare to pre-trade. The importing country always gains more from international trade than the exporting country. 4. Derive the export demand and import supply functions. 5. Do the following questions from the end of chapter 2 in the text the answers are provided in the end of the text questions 1, 3, 5, 9, and 11....
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review_Ch2 - As a result of free trade, consumers in the...

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