Suppose the North American Free Trade Agreement NAFTA result

Suppose the North American Free Trade Agreement (NAFTA) resulted in a single large market for wheat, instead of three separate markets in Canada, the United States, and Mexico. The supply schedule below shows how many billions of bushels of wheat are supplied per year by each country at four different prices per bushel Construct a North American market supply schedule for wheat by solving for the quantity of wheat supplied in the new North American market. Price Canada ico North America U.S. dollars per Quantity of Quantity of Quantity of Quantity of Mex bushel) Supplied (biltions of bushels) Wheat Supplied (billions of bushels) Supplied (billions of bushels) (billions of bushels) 25 20 15 10 $10 45 35 25 3 Submit Do you know the answer? I know it Think so Unsure No idea ASSIGNMENT PROGRESS: Step 1 . Supply assignment 54%

Solution

Price (Dollars per bushel) Canada Quantity of wheat supplied U.S. Quantity of wheat supplied Mexico Quantity of wheat supplied North America Quantity of wheat supplied Billions of bushels Billions of bushels Billions of bushels Billions of bushels 10 25 55 4 84 8 20 45 3 68 6 15 35 2 52 4 10 25 1 36 North America market supply is the summation of Canada, U.S and Mexico supply schedules