Use this information to answer the following questions: The
GDPs of countries A, B, and C are $1,000, $2,000, and $3,000,
respectively.There are 1,000 miles between country A and
countries B and C.Assume that their markets are
monopolistically competitive.Does the gravity equation predict
that there will be more trade between A and B or between A and
C?

Question

Quizplus · Accepted Answer

The Answer of Use this information to answer the following questions: The
GDPs of countries A, B, and C are $1,000, $2,000, and $3,000,
respectively.There are 1,000 miles between country A and
countries B and C.Assume that their markets are
monopolistically competitive.Does the gravity equation predict
that there will be more trade between A and B or between A and
C?

Use This Information to Answer the Following Questions: the