Draw the production curves for a typical firm in a perfectly competitive market. Show the production level and price. Assume the industry this firm is in is at long run equilibrium.

If canada has a surplus of paper products produced but its consumers demand more cleaning solutions, and the us has an abundance of cleaning solutions but consumers are demanding more paper products, how would trade benefit both countries? trade would assist both countries by creating excess demand. trade would assist both countries by strengthening their natural resources. trade would assist both countries to both reduce excess supply and satisfy market demand.