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2. Consider a competitive market in a small open economy. The supply is described by S = 4 + p while the demand is represented
2. Consider a competitive market in a small open economy. The supply is described by S = 4 + p" while the demand is represented by D =100 p6, where pp is the producers' price and p" is the consumers' price. (a) Initially the economy is closed to foreign trade. Determine the autarkic production, consumption, and price. What are the consumers surplus, producers surplus, and welfare of the market
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