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Graphing Exercises
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  1. Label the X-axis “I’s imports of good X and II’s exports of good X”. Label the Y-axis “I’s exports of good Y and II’s imports of good Y”.
    Graph the following curves by clicking here
    1. Draw country I’s offer curve, and label it OCI.
    2. Draw country II’s offer curve, and label it OCII.
    3. Draw a straight line from the origin to the intersection of the two offer curves. Label this line “(Px/Py)1 or TOT1”. The slope of this line represents which country’s terms of trade? How is this slope related to the other country’s terms of trade?
    4. Suppose country I decides to impose a tariff on its import good. Demonstrate this change on your graph, and discuss how each country’s volume of trade and terms of trade are affected.


  2. Label the X-axis “I’s exports of good X and II’s imports of good X”. Label the Y-axis “I’s imports of good Y and II’s exports of good Y”.
    Graph the following curves by clicking here
    1. Draw country I’s offer curve, and label it OCI.
    2. Draw country II’s offer curve, and label it OCII.
    3. Draw a straight line from the origin to the intersection of the two offer curves. Label this line “(Px/Py)1 or TOT1”. The slope of this line represents which country’s terms of trade?
    4. Suppose country II become more willing to trade. Demonstrate this change on your graph, and discuss how each country’s volume of trade and terms of trade are affected.


  3. Label the X-axis “I’s imports of good X and II’s exports of good X”. Label the Y-axis “I’s exports of good Y and II’s imports of good Y”.
    Graph the following curves by clicking here
    1. Draw country I’s offer curve, and label it OCI.
    2. Draw country II’s offer curve, and label it OCII.
    3. Draw a straight line from the origin to the intersection of the two offer curves. Label this line “(Px/Py)1 or TOT1”. The slope of this line represents which country’s terms of trade?
    4. Suppose both country I and country II agree to reduce tariffs on each other’s products. Demonstrate these changes on your graph, and discuss how each country’s volume of trade and terms of trade are affected.





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