I've attached an Excel problem set and PDF (for background info and questions) for you to do as practice to help you on your test as well as extra credit toward your final grade (1 extra credit point toward your final grade, e.g an 89 becomes a 90). When you complete the exercise, send you answer sheet to me by email.

Completed answer sheets need to be turned in by next Thursday July 19th. Also if you haven't completed the PPC Excel file and want the extra credit, have it turned in by this coming Monday July 16th.

Here are a few tips to help you as you are working through the questions. Use goal seek to find the "no trade price" by setting excess demand to 0 by changing the world price. To find the different surpluses, you'll need to know what the intercepts prices are for each curve. You can get the demand curve intercept by setting domestic demand to 0 by changing the world price. You can get the supply curve intercept by setting domestic supply to 0 by changing the world price. From there, you'll need to recall the area of a right triangle is (1/2)(B*H). The rest of the questions are deviations from the first few questions where you will change the world price to see if the country is an exporter or importer. You will also calculate the gains from trade.