1) The offer curves show that at point E, import demand is more than export supply of bananas. 2) The offer curves show that at point E, import demand equal export supply of bananas. 3) The offer curves show that at point F, import demand equal export supply of bananas. 4) The offer curves show that F is a balanced trade point. Figure 4 Offer curves of Nation 1 and Nation 2 Com PA' = 4 PF' = 2 PB PB¹=1 E 50 30 t 30 E' 50 PF = 1/2 PA=1/4 Bananas (tons)

1) The offer curves show that at point E, import demand is more than export supply of bananas. 2) The offer curves show that at point E, import demand equal export supply of bananas. 3) The offer curves show that at point F, import demand equal export supply of bananas. 4) The offer curves show that F is a balanced trade point. Figure 4 Offer curves of Nation 1 and Nation 2 Com PA' = 4 PF' = 2 PB PB¹=1 E 50 30 t 30 E' 50 PF = 1/2 PA=1/4 Bananas (tons)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter28: International Trade

Section: Chapter Questions

Problem 3P

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