Define the "offer curve" (or "reciprocal demand curve") of a country. If an offer curve is drawn as an upward-sloping curve, what is being assumed about the value of the country's elasticity of demand for imports and why does this assumption yield the upward-sloping curve?© BrainMass Inc. brainmass.com October 25, 2018, 2:16 am ad1c9bdddf
The offer curve shows us the willingness of a country to trade at all possible terms of trade. When good being exported lies along the x axis, and the good being imported along the y axis, an upward slope usually results. For example, if a country produced televisions and apricots, it would set its cost of televisions in terms ...
The implications of an upward sloping offer curve and underlying assumptions.
Economic Implications of a Movement Along Offer Curves
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.View Full Posting Details