Order the answer to: Starting from the pretrade equilibrium point in Figure 5.4, assume

Assignment Help business economics Order the answer to: Starting from the pretrade equilibrium point in Figure 5.4, assume

business economics

Order the answer to: Starting from the pretrade equilibrium point in Figure 5.4, assume

Question Starting from the pretrade equilibrium point in Figure 5.4, assume that tastes in Nation 1 change in favor of the commodity of its comparative disadvantage (i.e., in favor of commodity Y). (a) What is the effect of this change in tastes on PX / PY in Nation 1? How did you reach such a conclusion? (b) What is the effect of this change in tastes on r/w in Nation 1? (c) What is the effect of this on the volume of trade and on the trade partner? Figure 5.4
Subject business economics
Ready to try a high quality writing service? Get a discount here