Use This Information to Answer the Following Questions: the GDPs

question 16

Short Answer

Use this information to answer the following questions: The GDPs of countries A, B, and C are $100, $200, and $300, respectively. There are 1,000 miles between country A and countries B and C. Assume that their markets are monopolistically competitive. Does the gravity equation predict that there will be more trade between A and B or between A and C?

---

Definitions:

Imported Wine

Wine brought into a country from foreign vineyards or producers, often subject to regulations and duties.

Domestic Wine

Wine that is produced within the same country the consumer is in, as opposed to imported wine.

Standard Form

A way of structuring arguments or expressions according to fixed rules, often to clarify logical relations.

Categorical Conclusion

A statement resulting from a syllogistic argument, characteristic of being definitive and relating to categories or classes.