国际经济学5标准贸易模型(18)

标准贸易模型

A Standard Model of a Trading EconomyTo determine PC/PF , one must find the intersection of world relative supply of cloth and world relative demand.The world relative supply curve (RS) is upward sloping because an increase in PC/PF leads both countries to produce more cloth and less food. The world relative demand curve (RD) is downward sloping because an increase in PC/PF leads both countries to shift their consumption mix away from cloth toward food.18

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