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4. The demand for Natural Gas in country J is Q9 = 1000 2R]. Production of Natural Gas in country J is described by the
4. The demand for Natural Gas in country J is Q9 = 1000 2R]. Production of Natural Gas in country J is described by the supply function: Q3 = 2R; 200. (Note: the supply is not the same as the previous question). The demand for Natural Gas in country A is Q2 = 300 EPA and the supply of Natural Gas in country A is Qi = EPA (Note: the demand is not the same as the previous question). 1 (a) Find the freetrade equilibrium price of Natural Gas and the volume that is traded. (b) The government in country J sets a specic tariff on natural gas imports: t = $50. Determine the new quantity of natural gas imported by country J and the price of natural gas in each country. (c) For the tariff in part (2)) determine the changes to welfare in both country J and country A (changes relative to free trade). ((31) Instead of the tariff specied in part (b) nd a specic export tariff that country A can place on exports of natural gas, 6/; that will lead to the same volume of trade as the import tariff in part (b). (e) For the export tariff in part (d), determine the changes to welfare in both country J and country A (changes relative to free trade)
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