What is the effect on the equilibrium international price

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Consider again in given Figure, which shows free trade in motorbikes. Assume that U.S. productivity in producing motorcycles increases.

What is the effect on the U.S. domestic demand and/or supply curve(s)?

What is the effect on the U.S. demand-forimports curve? What is the effect on the equilibrium international price?

1284_The effects of trade on Production, Consumption and Price shown with demand and Supply Curves.jpg

Reference no: EM131210864

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