partial equilibrium one good. no trade equilibrium price of bread quantity of bread a d pbpb qbqb...
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PARTIAL EQUILIBRIUM
ONE GOOD
NO TRADE EQUILIBRIUMPRICE OF BREAD
QUANTITY OF BREAD
A
D
PB
QB
Sd
Dd
NO TRADE EQUILIBRIUMPRICE OF BREAD
QUANTITY OF BREAD
A
D
PB
QB
Sd
Dd
ProducerSurplus
NO TRADE EQUILIBRIUMPRICE OF BREAD
QUANTITY OF BREAD
A
D
PB
QB
Sd
Dd
ConsumerSurplus
CONSUMER SURPLUS MEASURES THE WELFARE GAIN THAT CONSUMERS
OBTAIN FROM PURCHASING GOODS THAT ARE BELOW
THEIR WORTH.
PRODUCER SURPLUS MEASURES THE WELFARE GAIN THAT PRODUCERS OBTAIN FROM SELLING GOODS AT PRICES THAT
ARE ABOVE THEIR PRODUCTION COST.
GAINS FROM TRADE:EXPORTING COUNTRY
PRICE OF BREAD
QUANTITY OF BREAD
A
G
E
QB
Sd
Dd
F
GAINS FROM TRADE:EXPORTING COUNTRY
PRICE OF BREAD
QUANTITY OF BREAD
A
G
E
Sd
Dd
F
CB QB
BC D
EXPORT
PRODUCER SURPLUS BE- FORE TRADE
PW
GAINS FROM TRADE:EXPORTING COUNTRY
PRICE OF BREAD
QUANTITY OF BREAD
A
G
E
Sd
Dd
F
CB QB
BC D
EXPORT
PRODUCER SURPLUS AFTER TRADE
PW
GAINS FROM TRADE:EXPORTING COUNTRY
PRICE OF BREAD
QUANTITY OF BREAD
A
G
E
Sd
Dd
F
CB QB
BC D
EXPORT
PW
CONSUMER SURPLUS
GAINS FROM TRADE:EXPORTING COUNTRY
PRICE OF BREAD
QUANTITY OF BREAD
A
G
E
Sd
Dd
F
CB QB
BC D
EXPORT
PW
CONSUMER SURPLUS AFTER TRADE
GAINS FROM TRADE:IMPORTING COUNTRY
PRICE OF WINE
QUANTITY OF WINE
A
G
B
QB
Sd
Dd
C
GAINS FROM TRADE:IMPORTING COUNTRY
PRICE OF WINE
QUANTITY OF WINE
A
G
B
Sd
Dd
CPW FD
IMPORT
GAINS FROM TRADE:IMPORTING COUNTRY
PRICE OF WINE
QUANTITY OF WINE
A
G
B
Sd
Dd
CPW FD
IMPORT
CONSUMER SURPLUS
GAINS FROM TRADE:IMPORTING COUNTRY
PRICE OF WINE
QUANTITY OF WINE
A
G
B
Sd
Dd
CPW FD
IMPORT
GAINS FROM TRADE:IMPORTING COUNTRY
PRICE OF WINE
QUANTITY OF WINE
A
G
B
Sd
Dd
CPW FD
IMPORT
EFFECTIVE SUPPLY AND DEMAND
EFFECTIVE SUPPLY AND DEMAND MEASURE THE
IMPACT OF DOMESTIC AND WORLD MARKETS ON A
COUNTRY
EFFECTIVE DEMAND FOREXPORTING COUNTRY
PRICE OF BREAD
QUANTITY OF BREAD
A
G
E
QB
Sd
Dd
F
PD=PWDe
EFFECTIVE SUPPLY CURVE:IMPORTING COUNTRY
PRICE OF WINE
QUANTITY OF WINE
A
G
Sd
Dd
Pd = PwFD
Se
EXCESS DEMAND CURVEAUTARKY NO EXCESS DEMANDPRICE OF BREAD
QUANTITY OF BREAD
A
G
E
QB
Sd
Dd
F
EXCESS DEMAND CURVEALLOW TRADE TO OCCUR
PRICE OF BREAD
QUANTITY OF BREAD
A
G
E
QP
Sd
Dd
F
QC
EXCESS DEMAND CURVEALLOW TRADE TO OCCUR
PRICE
QUANTITY
A
G
E
QP
Sd
Dd
QC
PRICE
QUANTITY
PW
PW
QT
A
B
C
ED
EXCESS SUPPLY CURVEAUTARKY NO EXCESS SUPPLY
PRICE
QUANTITY
A
G
E
QB
Sd
Dd
F
EXCESS SUPPLY CURVEALLOW TRADE TO OCCUR
PRICE
QUANTITY
A
G
E
QP
Sd
Dd
QC
PRICE
QUANTITY
PW
PW
QT
A
B
C
ES
EXCESS SUPPLY AND DEMAND CURVE
PRICE
QUANTITY
A
D
QT
ESSUM
EDSUM
C
PW
B