Question
Consider a world consisting of two countries, Ghana and Canada. Suppose the domestic demand and-supply curves for bicycle in Ghana are given by the following
Consider a world consisting of two countries, Ghana and Canada. Suppose the domestic demand and-supply curves for bicycle in Ghana are given by the following equations:
Demand: P = 80 - 2Q
Supply: P =5 + 3Q
(d) If a tariff of 20 percent is imposed on imports from Canada, by how much do consumption and domestic production change? How much revenue does the government earn from the tariff?
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
