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(a) Explain the meaning of international economics (2 marks). (b) Suppose the elasticity of demand for a computer is -0.6, elasticity of computer supply

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(a) Explain the meaning of international economics (2 marks). (b) Suppose the elasticity of demand for a computer is -0.6, elasticity of computer supply is 0.4 and the government imposes a tax of Kshs. 100 per computer: Required i) Compute tax on a computer buyer (2 marks). ii) Interprete your answer in question 1b (i) and explain who bears a lower tax burden and why? (4 marks). (c) Critically discuss the gains that arise from international trade (17 marks).

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a International economics is the study of the economic interactions and relationships between different countries regions or economic blocs It examines the flow of goods services capital labor and tec... blur-text-image

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