3. Suppose we divide the world into 2 regions, A and B, and that: Region A's demand curve for microwaves is given by: DA= 1,800-20P. Its supply curve is: SA = 25P Region B's demand curve for microwaves is given by: DB = 1,375-40P. Its supply curve is: SB = 15P (a) Under no trade, what will be the equilibrium price and quantity is each region? (b) Under no trade, what will be the consumer surplus and producer surplus in each region? (c) When trade occurs, which region will export microwaves? Explain briefly.
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