Final answer:
In analyzing international trade, supply and demand curves are labeled as follows: The demand curve represents the quantity of a good or service that buyers are willing and able to purchase at various prices. The supply curve represents the quantity of a good or service that producers are willing and able to supply at various prices.
Step-by-step explanation:
In analyzing international trade, supply and demand curves are labeled as follows:
- The demand curve represents the quantity of a good or service that buyers are willing and able to purchase at various prices.
- The supply curve represents the quantity of a good or service that producers are willing and able to supply at various prices.
When analyzing international trade, we can sketch two supply and demand diagrams, one for each country involved. These diagrams show the equilibrium price and the levels of exports and imports in the world after trade.