Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

dont use cheggg gg answeres please!!!!!!!!!!! The demand and supply of e-scooters in UAE, a small economy, is given in the table below. Price (AED)

dont use cheggg gg answeres please!!!!!!!!!!!

The demand and supply of e-scooters in UAE, a small economy, is given in the table below.

Price (AED) Quantity demanded Quantity supplied
0 28 0
100 26 2
200 24 4
300 22 6
400 20 8
500 18 10
600 16 12
700 14 14
800 12 16
900 10 18
1000 8 20

a). Sketch the demand and supply in the grid provided below [1 mark]

b). India and Turkey can supply UAE with e-scooters at AED500 in free trade. But currently UAE has imposed a AED100 per unit import tariff on e-scooters from both countries. Suppose UAE and India form a customs union. Identify on the graph AND compute the trade creation and trade diversion (if any). [3 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Business Today

Authors: Charles Hill

9th Edition

1259299201, 9781259299209

More Books

Students also viewed these Economics questions

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago

Question

The quality of the argumentation

Answered: 1 week ago