Using a Graph, Show a Market Equilibrium

question 260

Essay

Using a graph, show a market equilibrium. Suppose the costs of inputs increase. How is this shown on the graph? Explain what is happening in the market.

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Definitions:

Exports

Goods or services produced in one country and sold to buyers in another, contributing to the exporting country's GDP.

Imports

Goods and services bought by a country from foreign markets.

Trade Surplus

A situation where a country's exports exceed its imports for a given period, leading to a positive balance of trade.

Exports

Items or services dispatched from one country to another for the intent of trade or sale.