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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 399 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Consider a two-country world. Each country has an upward-sloping national supply curve for raisins and a downward-sloping national demand curve for raisins. With no trade in raisins, the no-trade equilibrium price for raisins in one country would be $2.00 per kilogram and the no-trade equilibrium price for raisins in the other country would be $3.20 per kilogram. If the countries allow free trade in raisins, explain why $3.50 per kilogram cannot be the free-trade equilibrium world price for raisins. In your answer, draw and refer to graphs of supply and demand curves for the two national markets.
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