Guatemala represents a small part of the world poultry market. Based on Figure 17P-2, answer the following.

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Guatemala represents a small part of the world poultry market. Based on Figure 17P-2, answer the following.

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a. Calculate producer and consumer surplus in autarky.
b. Assume that the world price of poultry is $0.30/kg. If Guatemala opens to trade, what is the domestic quantity consumed and produced? What is the quantity of imports?
c. Calculate the post-trade producer and consumer surplus. Who is better off after trade?
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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