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List of Figures Figure 1 Individual Demand Price Aggregate Demand Price mu’’ p* p* mu’ c’ c* c’’ c* Quantity Quantity Figure 2 Firm Supply Price Aggregate Supply Price mc’’ p* p* mc’ q’ q* q’’ q* Quantity 1 Quantity Figure 3 Market Equilibrium Price Consumers surplus Supply curve p* Demand curve Producers surplus c* Quantity Figure 4 Home Market Price Import Demand Supply curve p* Price p* p’’ p’’ A B C D C p’ E p’ Demand curve z’ z’’ c* c’’ c’ Quantity 2 MD M’’ M’ Imports Figure 5 Foreign Market Price Export Supply Price Supply curve XS p’’ p’’ A B C D E D p’ p’ p* p* F Demand curve c’’ c’ c* z’ z’’ Quantity Figure 6 Open-Economy Market Price XS ≡ MS pFT MD MFT = XFT Imports 3 X’ X’’ Exports Figure 7 Foreign Market Export Supply Border Price Price Demand Open-Economy Market Domestic Price Supply MS’ MS D2 Domestic Price Domestic Price C1 C D= D1+D2 p’ A A pFT B E B p’-T C2 C=C1+C2 p’ pFT Home Market XS ≡ MS ps D1 Import Demand pFT B A pFT B B p’-T E pFT p’-T B p’-T p’-T T D X’ Quantity X’ XFT M’ Exports 4 MFT = XFT Supply MD Imports M’ MFT Imports Demand M’ Quantity Figure 8 Open-Economy Market Home Market Price Price C2 C pFT+T C1 MS’ A pFT MS pFT+T E A pFT Supply Demand MD M’ MFT Imports M’ 5 Quantity