In November 2024
Answer to Question #282585 in Economics for Hafsa
How is the combined supply curve of both nations for each of the traded commodities determined? How is the equillibrium-relative commodity price determined with trade?
The combined supply curve of both nations for each of the traded commodities is determined as a sum of national supply of each country.
The equilibrium-relative commodity price with trade is the common relative price in both nations at which trade is balanced.
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