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Consider the market for sneakers, The domestic demand equation is given by Q = 100 - SP, and the domestic supply equation is given by
Consider the market for sneakers, The domestic demand equation is given by Q = 100 - SP, and the domestic supply equation is given by Q = 10 + P. The resulting no-trade equilibrium price is |:|. Suppose the world supply equation is P = 10. The resulting equilibrium price will be , the total quantity of sneakers purchased is |:|, and the quantity of sneakers imported is |:|. Suppose the government imposes an import tariff on sneakers of $2 per unit. The new equilibrium price of sneakers is |:|, total imports will decrease by |:| units of sneakers, and the total revenue collected from the tariff is $|:|
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