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1- Suppose the clothes are produced and sold in the perfect competition market, where the quantity is 1000 units and the price is 100 LE
1- Suppose the clothes are produced and sold in the perfect competition market, where the quantity is 1000 units and the price is 100 LE in the domestic market. With the free trade policy, the price of imported clothes is decreased to (50) LE where the quantity demanded is (1500) units but the domestic supplied quantity Is (500) units, if the government is applied protectionist policy through custom tax, to protect clothes industry the custom tax is estimated by(25) LE per unit, after this fax the quantity demanded became 1200 units and quantity supplied (800) units. Based on these data and information, determine numerically and graphically the effects of this protectionist policy on the following: Consumer's welfare, producer's surplus. Government revenues and the net losses in the society. Determine the justifications to this protectionist policy in the developing countries in general and in Egypt particular., Determine the factors that could be satisfied to be successful and effective
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