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Use National Demand and Supply Curves to Show

Question 44

Essay

Use national demand and supply curves to show
(a) the incentives for trade to begin between nations.
(b) the effect on the likely pattern of trade of a change in technology in A that causes A's national supply curve to shift out.
(c) the effect on the likely pattern of trade of a change in tastes in B in favor of good S.

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(a) Trade is likely to occur along the l...

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