Question
The country Midwest trades with the outside world and has no duties. After increased exports, the country reasons to start protecting its own industry that
The country Midwest trades with the outside world and has no duties. After increased exports, the country reasons to start protecting its own industry that produces steel according to P = 10 + 3Q. The demand for steel is in the Midwest P = 50 -Q. The world market price of steel is 20. Calculate and illustrate the effects on price and quantity as well as the imports / exports that result from Midwest imposing a duty of 10. Calculate and comment on the direct welfare consequences in Midwest of the imposition of customs divided into producers, consumers, state and net.
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