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February 08, 2012 |
Supply and Demand Geometry for International Trade: The world beer market: Results
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| U.S. market | International market | German market |
Dollar values in the diagrams above (in $ million):
For the U.S.: a=16, b=2, c=2, d=4
For Germany: a'=10, b'=1, c'=1, d'=2
Complete the following table based on the values from the diagrams above:
| ----U.S.---- | ---Germany--- | |
| Autarky price | ___ | ___ |
| Free-trade price | ___ | |
| Free-trade quantities... | ||
| Produced | ___ | ___ |
| Imported (+)/Exported (-) | ___ | ___ |
| Consumed | ___ | ___ |
| Welfare effects of free trade ($ million)... | ||
| Change in consumer surplus | ___ | ___ |
| Change in producer surplus | ___ | ___ |
| Change in national welfare | ___ | ___ |