Graphing Exercises (See related pages) Consider the DFS model described in Chapter 4. Graph the following curves by clicking here Graph the A curve. Why is it downward-sloping? Graph the C curve. Why is it upward-sloping? Mark on your graph the equilibrium values of relative wages and goods. Suppose an increase in demand for country 2’s goods occurs, leading to an increase in country 2’s relative wage (and, therefore, a decrease in country 1’s relative wage). How does the C-curve shift? Demonstrate this change on your graph, labeling the new curve C5. Will country 1 export more or fewer goods? Now start a new DFS graph. Graph the following curves by clicking here Graph the A curve. Why is it downward-sloping? Graph the C curve. Why is it upward-sloping? Mark on your graph the equilibrium values of relative wages and goods. Suppose technological improvement in country 2 causes a decrease in labor requirements (a2) there. How does the A-curve shift? Show this change on your graph, labeling the new curve A5. Will country 1 export more or fewer goods? Now start a new DFS graph. Graph the following curves by clicking here Graph the A curve. Why is it downward-sloping? Graph the C curve. Why is it upward-sloping? Mark on your graph the equilibrium values of relative wages and goods. Suppose decrease in labor supply in country 1 causes country 1’s relative wage to rise (and therefore a country 2’s relative wage decreases). How does the A-curve shift? Show this change on your graph, labeling the new curve A5. Will country 1 export more or fewer goods?
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Home > Chapter 4 > Graphing Exercises

Choose a ChapterChapter 1Chapter 2Chapter 3Chapter 4Chapter 5Chapter 6Chapter 7Chapter 8Chapter 9Chapter 10Chapter 11Chapter 12Chapter 13Chapter 14Chapter 15Chapter 16Chapter 17Chapter 18Chapter 19Chapter 20Chapter 21Chapter 22Chapter 23Chapter 24Chapter 25Chapter 26Chapter 27Chapter 28Chapter 29

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Choose a ChapterChapter 1Chapter 2Chapter 3Chapter 4Chapter 5Chapter 6Chapter 7Chapter 8Chapter 9Chapter 10Chapter 11Chapter 12Chapter 13Chapter 14Chapter 15Chapter 16Chapter 17Chapter 18Chapter 19Chapter 20Chapter 21Chapter 22Chapter 23Chapter 24Chapter 25Chapter 26Chapter 27Chapter 28Chapter 29

Quizzes Multiple Choice Quiz More Resources Graphing Exercises