Consider again in given Figure, which shows free trade in motorbikes. Assume that U.S. productivity in producing motorcycles increases.
What is the effect on the U.S. domestic demand and/or supply curve(s)?
What is the effect on the U.S. demand-forimports curve? What is the effect on the equilibrium international price?
![1284_The effects of trade on Production, Consumption and Price shown with demand and Supply Curves.jpg](https://secure.tutorsglobe.com/CMSImages/1284_The effects of trade on Production, Consumption and Price shown with demand and Supply Curves.jpg)