The table below represents the demand and supply schedules for cement in Canada and United States. (Assume these are only 2 countries trading in cement). Price per Quantity Quantity 50 kg bag demanded in supplied in Quantity demanded in Quantity supplied in of cement Canada Canada United States United States (in US$) ('000 bags) ('000 bags) ('000 bags) ('000 bags) 80 200 20 200 50 160 170 40 170 100 240 140 60 140 140 320 120 80 120 160 400 100 100 100 180 480 80 120 80 200 560 60 140 60 220 640 40 160 40 240 a) If there is no trade between these two countries, what are the equilibrium price and the equilibrium quantity in Canada? b) If there is no trade between these countries, what are the equilibrium price and the equilibrium quantity in the United States? c) If Canada and the United States trade with each other, what will be the equilibrium price in the world for cement? d) If Canada and the United States trade with each other, which country will export cement and how much?
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For Canada: - At a price of $80 per bag, the quantity demanded is 200, and the quantity supplied is 20. - At a price of $70 per bag, the quantity demanded is 170, and the quantity supplied is 40. - At a price of $60 per bag, the quantity demanded is 140, and the Show moreā¦
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