Do countries win or lose when they engage in international trade? In other words, are there winners and losers when countries engage in international trade? Why or why not?
In your answer, be sure to define any economics terms used. A good answer will be well-thought out and should generally take several sentences. Your answer should address the fundamental reason behind why countries engage in trade in the first place too.
4 pts
Suppose you have a market for bruschetta which is currently in equilibrium. Thinking of the supply and demand graph for this market, what would have to happen to cause both the equilibrium quantity of bruschetta in this market to fall and the equilibrium price of bruschetta in this market to fall? Is this even something that could happen?
In your answer, please pay attention to and describe what would have to happen to the supply and demand. (You may of course elaborate with any hypothetical “real life” reasons for any changes in the graph too.)
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