Answer the following questions based on the information provided: 1. Which country has comparative or absolute advantage in producing X? 2. What are the equilibrium price and quantity in country A...

Answer the following questions based on the information provided:
1. Which country has comparative or absolute advantage in producing X?
2. What are the equilibrium price and quantity in country A under autarky?
3. What are the equilibrium price and quantity in country B under autarky?
4. Suppose countries A and B decide to engage in international trade.
a. What is the price they agree on to exchange product X?
b. Which country exports X and which country imports X and how much?
c. What is the total production of product X in each country after trade?
5. In the following table, report the consumer surplus and producer surplus before and after
trade for each country:
Before Trade After Trade
Country A Consumer Surplus Consumer Surplus
Country B Consumer Surplus Consumer Surplus
Country A Producer Surplus e Producer Surplus
Country B Producer Surplus m Producer Surplus
6. What is the net gain from trade to country A, country B, and total gain from trade?
7. Suppose the importing country decides to impose a quota of 6 units. What is the import price
for the importing country after the imposition of the quota?

Course Project for Economic 3107 Fall 2017 Please read the instructions on how to prepare and submit your project/assignment. These documents are available under the Project_Assignment menu with the following titles: “General Information and Requirements for Assignment.pdf” “How to Submit assignments.pdf” Having carefully rad these documents, please proceed the respond to the following questions. As a World Bank economist, you are given the following information about demand and supply conditions for product X in countries A and B. Demand for X in Country A: ?????? = 70 − 2?? Supply of X in Country A: ?????? = 10 + 2?? Demand for X in Country B: ?????? = 70 − 2?? Supply of X in Country B: ?????? = 4 + ?? Answer the following questions based on the information provided: 1. Which country has comparative or absolute advantage in producing X? 2. What are the equilibrium price and quantity in country A under autarky? 3. What are the equilibrium price and quantity in country B under autarky? 4. Suppose countries A and B decide to engage in international trade. a. What is the price they agree on to exchange product X? b. Which country exports X and which country imports X and how much? c. What is the total production of product X in each country after trade? 5. In the following table, report the consumer surplus and producer surplus before and after trade for each country: Before Trade After Trade Country A Consumer Surplus Consumer Surplus Country B Consumer Surplus Consumer Surplus Country A Producer Surplus e Producer Surplus Country B Producer Surplus m Producer Surplus 6. What is the net gain from trade to country A, country B, and total gain from trade? 7. Suppose the importing country decides to impose a quota of 6 units. What is the import price for the importing country after the imposition of the quota? 8. Calculate the welfare change in the importing country after the quota assuming the government gives the import license to domestic importers. 9. What is the maximum value of the import license?