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Consider a small economy (Home) that imports a good at a world price of $10 per unit. The domestic supply curve of this good is

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Consider a small economy (Home) that imports a good at a world price of $10 per unit. The domestic supply curve of this good is Q=15P The demand curve is Q = 1350 30P. 1.1. lllustrate the market for the good in the space below. Be sure to label intercepts, the no-trade equilibrium, world price and the quantity of imports in the small (Home) economy. (5 points) (a) Home Market (b) Import Market Price Price Quantity 0 Imports

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