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2. Now assume that Economica is a large country. Use the domestic supply and domestic demand curves from the top of the page to calculate

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2. Now assume that Economica is a large country. Use the domestic supply and domestic demand curves from the top of the page to calculate Economica's import demand curve. The export supply curve is as follows Price Quantity 0 0 20 50 40 100 60 150 80 200 a. Graph the import demand and export supply curves b. Now assume that Economica imposes a $20 per barrel tariff on oil imports. Graph the effect of the tariff on the export supply curve, using your graph from part a. Use your graph to calculate the following provide numerical answers. You will need to graph accurately) the price of oil in Economica c. d. the price of oil in the rest of the World e. Graph the domestic supply and demand curves given at the beginning of the problem. Use your graph in parte and information on the price of oil in parts c and d to calculate the following: f. Deadweight loss of the tariff in Economica g. the terms of trade effect h. The effect of the tariff on total surplus (consumer, producer and government) in Economica i. Bonus. Calculate deadweight loss in the rest of the world Use the following information on the supply and demand for oil in the hypothetical country Economica to answer the questions below. Assume that the demand and supply curves are linear It is possible to answer question 1 without drawing a graph, but a graph will likely be helpful. Questions 2a, band e require a graph. You may use the template at the end of the problem or draw your own graph. Domestic Domestic Price ($) Demand Supply 20 180 40 160 60 140 90 80 120 120 100 100 150 120 80 180 30 60

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