Question
Suppose a small country is producing some agricultural goods. The domestic supply and demand function are given as S=3p-60 and D=?3p+150 respectively. p is the
Suppose a small country is producing some agricultural goods. The domestic supply and demand function are given as S=3p-60 and D=?3p+150 respectively. p is the unit price. The international price for such goods is 25 dollars per ton. The domestic government has decided to impose an import quota M=X'-Y' on the amount of import. Under the open economy, when M=30, please calculate the consumer surplus, producer surplus, total surplus, and deadweight loss of this country. (From the perspective of surplus analysis, the impact of import quota is the same as specific tariff)
Price S So D Y+ X Amount MStep by Step Solution
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