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Unformatted text preview: 6. Compare pre-trade and after trade production and consumption levels of cloth and wheat in both countries. 7. Explain how you will derive the demand curve for cloth. 8. Explain how you will derive the demand curve for wheat. 9. How much cloth is exported? How much wheat is exported? 10. Suppose that the price of cloth goes up. How will this affect the trade line and optimal level of consumption in the cloth exporting country? Show on the graph and explain. 11. Chapter 3 end of chapter questions 1, 3, 5, and 7 (the answers are provided in the text) 12. Chapter 4 end of chapter questions 1, 3, and 7 (the answers are provided in the text)...
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This document was uploaded on 12/04/2011.
- Spring '09
- Opportunity Cost