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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 the calculation of how the 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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To find the values in the table for autarky free trade and trade constrained by an import tariff of 8 EUR per liter we need to solve for the equilibri...
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International Economics
Authors: Thomas A. Pugel
15th edition
73523178, 978-0077769529, 007776952X, 978-0073523170
