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India joined Indonesia in a free trade area. Before the union, India imports 250 thousand traveling bags from Malaysia at $150 and adds a tariff

India joined Indonesia in a free trade area. Before the union, India imports 250 thousand traveling bags from Malaysia at $150 and adds a tariff of $50 on each traveling bags. The price of a traveling bag in Indonesia is $175.

a)Compute the trade diversion cost

b)How much extra imports would have to be generated in Australia to offset this trade diversion cost.

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