Explain the economic implications of a movement along a nation's offer curve. Also explain why the offer curve is backward bending or forward bending.© BrainMass Inc. brainmass.com October 9, 2019, 8:29 pm ad1c9bdddf
Offer curves are plotted on a graph where the axes represent the quantities of two goods, one on the x axis and one of the y. They show how much a country is willing to export (offer) in order to obtain each level of imports. Thus the offer curve gives the quantity of good X that a country is willing to export in exchange for various quantities of imported good Y. Each point on the offer curve represents a different free trade consumption bundle. By placing two offer curves representing two different ...
Explain the economic implications of a movement along a nation's offer curve. Also explain why the offer curve is backward bending or forward bending.