Suppose that the domestic demand and supply for shoes in a small open economy are given by.

Question:

where P denotes price and Q denotes quantity.

a. What are the autarky price of shoes and the quantity produced?

b. What are the levels of domestic production, consumption, and imports if the world price is $10?

c. How would your answers in part (b) change if this country were to impose a tariff of $3?

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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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Question Posted: Apr 25, 2024 01:00 AM

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Suppose that the domestic demand and supply for shoes in a small open economy are given by.

Question:

P 80 2Q (demand) P=8+Q (supply)

Step by Step Answer:

International Economics

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