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Consider the domestic demand for rice to be given by Qd = 25-0.5P and that rice can be Imported at an international price of $40
Consider the domestic demand for rice to be given by Qd = 25-0.5P and that rice can be Imported at an international price of $40 per sack. If the government perceives this price too high and decides to subsidize imports by $20 per sack. This policy will increase imports of rice by and create a deadweight loss of
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