1. quantity price demand MR MCA B Figure 9.2

2. Manufactures Food Mon Opt U mon U opt ppf -slope = p m /p f = MRS -slope = MRT Figure 9.3

3. Manufactures Food Mon Cou U mon U cou ppf MRS mon MRT mon MRS cou MRT cou Figure 9.6

4. imports = q BA quantity price demand monopoly reciprocal dumping p mon p rec q mon q AA q rec profits in autarky increase consumer surplus with trade domestic profits with trade foreign profits with trade net welfare effect-/- c Tc MR mon MR rec A B Figure 9.7

5. Belgium 5 million laborers 10,000 varieties produced, 10,000 consumed The Netherlands 7 million laborers 14,000 varieties produced, 14,000 consumed Belgium 5 million laborers 10,000 varieties produced, 24,000 consumed The Netherlands 7 million laborers 14,000 varieties produced, 24,000 consumed a. Autarky b. International trade 10,000 varieties; 7/12 th of production 14,000 varieties; 5/12 th of production Figure 10.6

6. Variety 1 A Variety N A Variety 2 B Variety 1 B Variety 2 A Variety N B Consumer country AConsumer country B............ Exports from B to A Exports from A to B Figure 10.7

7. Intermediate 1 A Intermediate N A Intermediate 2 B Intermediate 1 B Intermediate 2 A Intermediate N B Producers country AProducers country B............ Exports from B to A Exports from A to B Consumers country AConsumers country B Figure 10.8

8. quantity price demand MR MC p mon p world p comp A B C DE p world +t 0 D’ E’ p world +t 1 F Figure 11.2

9. quantity price demand MR MC p quota p world A B C imports p world +t D demand’ Figure 11.3

10. Manufactures Food ppf U0U0 U1U1 Figure 12.5

11. Increasing degree of private control market socialism Increasing degree of private property capitalism welfare state socialism / communism A Figure 12.7

12. Manufactures Food O A B C DE ppf Figure 12.8

13. quantity demand supply price pCpC pBpB p B +t p C +t tariff q0q0 q1q1 q4q4 q3q3 imports after customs union imports before customs union decrease producer surplus net gain increase consumer surplus decrease government revenue Figure 13.2

14. quantity demand supply price pBpB pCpC p C +t p B +t tariff q0q0 q1q1 q4q4 q3q3 imports after customs union imports before customs union decrease producer surplus net gain; possible loss increase consumer surplus decrease government revenue -/- Figure 13.3