Exercise

Market for Computers

Domestic Market International Market
Price
Domestic Domestic
Price World World
Demand Supply
Demand Supply
Price a
after World
trade Price
b e
Price
Before
trade c
Imports

Domestic Domestic Quantity Quantity

quantity quantity of of
demanded supplied
computers computers
 Welfare Effect of Trade
1) What happens in the computers´domestic market after trade?
2) Fill the table below:

3) The net national effect of trade was positive or negative? Is the

country worse-off or better-off after trade?
This is the impact of exports in welfare