Construction order: label axes and units → draw the required curves → label beside curve ends → mark equilibrium coordinates with dotted guides → add shift arrows or identify areas. For flow charts, follow the direction of the economic relationship; do not invent price or quantity axes.
Select the diagram that explains the question. Reproduce the essential labels and explain the mechanism in words. This index points to representative diagrams; paired and alternative cases remain beside them in the chapter.
| Use when explaining | Essential labels and checks | Diagram |
|---|---|---|
| Comparative advantage and opportunity cost | Both goods; each country’s frontier and intercepts; opportunity costs. | p. 12 |
| Compare forms of integration | Internal barriers; external tariff; factor movement; policy integration. No market axes needed. | p. 21 |
| Small-country tariff welfare | Domestic D/S; world/tariff prices; four quantities; revenue and welfare-loss areas. | p. 27 |
| A binding import quota | World/quota prices; domestic supply/demand; import gap; quota rents. | p. 27 |
| A domestic production subsidy | World price; domestic D and shifted S; output and imports; subsidy cost. | p. 28 |
| A change in currency demand or supply | Explicit currency quotation; currency quantity; shifted curve and arrow; rates before/after. | p. 37 |
| Defending an exchange-rate target | Target rate; currency D/S; excess supply/demand; intervention gap. | p. 37 |
| Trade-balance adjustment after depreciation | Trade balance and time; initial deterioration then possible improvement; zero reference. | p. 40 |
| Income or wealth inequality | Cumulative population and income/wealth shares; equality line; Lorenz curve; A and B. | p. 48 |
| Tax rate and possible tax revenue | Tax rate and revenue; illustrative peak; actual economy’s position is not given. | p. 59 |
| Price stabilisation with buffer stocks | D/S; floor/ceiling; quantity bought or released; direction of market pressure. | p. 83 |