Home » Question: Use standard trade model graphs to analyze trade for a country that has increasing cost production technology.

# Question: Use standard trade model graphs to analyze trade for a country that has increasing cost production technology.

Question:Use standard trade model graphs to analyze trade for a country that has increasing cost production technology. For your graphs, put Good X on the horizontal axis and Good Y on the vertical axis. Be sure to draw correctly-shaped indifference curves. Label your axes, curves, and price lines. The graphs in part A and part B are for the same country, so use the same shaped PPF for both graphs. Also be sure that the indifference curves of the two graphs harmonize. (That is, if all the indifference curves from both graphs were put on just one graph, they wouldn’t cross.)

A. High World Price of Y:  The world price of Good Y is greater than the country’s no-trade price of Good Y.

A1. Draw a graph showing the country maximizing economic wellbeing for the no-trade case.

Label this point. Show the amount of Y production for the no-trade case.

A2. On the same graph show the country maximizing economic wellbeing for the trade case.

Label the production point and the consumption point. Show the amount of Y production for the trade case.

A3. What happens to the amount of Y production as the country changes from no-trade to trade?

A4. What happens to the country’s economic wellbeing as it changes from no-trade to trade?

How do you know?

B. Low World Price of Y: The world price of Good Y is less than the country’s no-trade price of Good Y.

B1. Draw a graph showing the country maximizing economic wellbeing for the no-trade case.

B2. On the same graph show the country maximizing economic wellbeing for the trade case.

Label the production point and the consumption point. Show the amount of Y production and the amount of Y consumption for the trade case.

B3. On the graph, show the amount of Y imports or Y exports and label it correctly as “imports” or “exports.”

C: At what world price of Good Y can’t the country gain from trade?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.