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ALL INFORMATION REQUIRED TO SOLVE IS LISTED! Suppose there are 2 countries, Domestic and Foreign, and 1 good is produced, X. In Domestic: QD =

ALL INFORMATION REQUIRED TO SOLVE IS LISTED!

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Suppose there are 2 countries, Domestic and Foreign, and 1 good is produced, X. In Domestic: QD = 44 - 2*P and Qs = -4 + 2*P. In Foreign: QD = 30-2*P and Qs = -2 + 2*P. a. (5 pts.) In Autarky, for Domestic, what are: P*D = Q*D = CS*D = PS*D= W* D = b. (5 pts.) In Autarky, for Foreign, what are: P*F = Q*F = CS*F = PS*F = W*F = c. When the countries open to trade what will the free trade price be: Pw = d. (5 pts.) With free trade, for Domestic, what are: Q*D = Q*s = CS*D = PS*D = W* D = e. (5 pts.) With free trade, for Foreign, what are: Q*D = Q*s = CS*F = PS*F = W*F =f. (12 pts.) Using the values found and including them in your answer, describe the gains and losses, in each country, to each country's consumers, producers and the society as a whole. Start your answer here > g. (3 pts.) Suppose that the importing country is now \"small\" in terms of global trade. What does \"small\" in this context mean? Start your answer here > h. (6 pts.) Suppose the small importing country imposes a tariff of $1 per unit imported, What are: Tariff Revenue = W*F = i. (12 pts.) In the importing country, has the tariff beneted or hurt the country? Explain how for each of the three interested parties and the country as a whole. ? Start your answer here >

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