Posted by Mary on .
Suppose the U.S. is an importer of product X and that there are no trade restrictions. Let us asuume that the U.S. consumers buy 1 million units of X each year, of which 400,000 are produced domestically and 600,000 are imported.
A. Suppose a technological advance in Japan causes the world price of X to fall by $100. Draw a graph to show this change affects the well-being of U.S. consumers and U.S. producers of product X. ( you can assume the U.S. is a small country in the world market for product X.)
I need help in figuring out how to go about and solve or know the effects so i can be able to draw a graph...