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interdependence and gains from trade - Coggle Diagram
interdependence and gains from trade
cost of production
productivity
absolute advantage
opportunity cost
comparative advantage
how much given up to obtain an item of another good?
export vs import
imports :
goods prodcue abroad, sold domestically
exports
goods produced domestically and sold abroad
DEMAND
quantity demand
amount of good buyers willing and able to purchase
law
other things equal, qtt demand falls when price rises
change
income
price of related goods
tastes
expectations
no of buyers
supply
qtt supplied
amount of good sellers willing and able to sell
law
others =, qtt supplied rises when price rises
change
sellers wish to produce at any given price
market not =
surplus
when price > = price
qtt supplied > qtt demanded
lower price -> sale more-> moving to equilibrium
shortage
price < = price
qtt supplied < qtt demanded
rise price -> toward eqilibrium