Answer to Question #292784 in Economics for Hafsa

Question

How can the supply curve of exports and the demand curve of imports of a commodity be derived from the total demand and supply curves of a commodity in the two nations?

Answer 1

An export supply curve is the difference between the quantity that Foreign producers supply minus the quantity that Foreign consumers demand, at each price.

An import demand curve is the difference between the quantity that Home consumers demand minus the quantity that Home producers supply, at each price.