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In a small economy, the demand and supply of organic olive oil are given by the following functions: Qd=120 000-1000P and P=20+Qs/9000, where P is
- In a small economy, the demand and supply of organic olive oil are given by the following functions: Qd=120 000-1000P and P=20+Qs/9000, where P is the price per liter, in euros. The price of olive oil of similar quality in other countries is 10 euros per liter.
- Complete the table below and show how each answer was derived.
Autarky
Free trade Trade constrained by an import tariff of 8 EUR per liter. Domestic consumption Domestic production Government revenues
- Complete the table below and show how each answer was derived.
|
Autarky | Free trade | Trade constrained by an import tariff of 8 EUR per liter. | |
| Domestic consumption | |||
| Domestic production | |||
| Government revenues |
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
