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Please answer all parts Maxistan and Hamsterville are two countries that are trading partnens. The table below shows the domestic markets in Maxistan and Hamsterville
Please answer all parts
Maxistan and Hamsterville are two countries that are trading partnens. The table below shows the domestic markets in Maxistan and Hamsterville for the good Glecmenex. Assume all pricex are in a common currency (the US dollar) and these are the only two countries trading this good. What will be the world price of Gleemenex if there is free trade between these two countries? World Price \$ If Hamsterville Imposes a $10 tariff on this good, what is the effect? The amount traded between the countries will increase. Consumer surplus in Hamsterville will decrease. Total Surplus will increase. Consumer surplus in Hamsterville will increase. The graphs of the markets above are shown in the skech below. Maxistan is the market on the left and Ifarmaterville is the narket on the right. 5X represents the world price that you found in a provioen part of this quection. What is the dollar value of total murplus in Maxistan in free trade? What in the dollar value of total sarphas in Hanuterville in froe trade? What area(s) represent the salns from trade? Choese the answer that best represents all of the gains from traife. 1. MR M I.MONRT IN What is the dollar value of total surplus in Maxistan in free trade? What is the dollar value of total surplus in Hamsterville in free trade? What area(s) represent the galns from trade? Choose the answer that best represents all of the galns from trade. L. OT MR M LMONRT L.N 0 N Step by Step Solution
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