3.A local economy's market demand for drones is given by Q® = 24 - 4P whilesupply is given by Q5 = 8P.Assume that domestic and world economic conditions were such thạt the local economystarted exporting drones. What is the effect of drone exports on local economy's produćersurplus, consumer surplus and total surplus?Suppose instead that domestic and world economic conditions change such that it makesmore sense for the local economy to start importing drones. What is the effect of droneimports on the local coconomy's producer surplus, consumer surplus and total surplus?

Conducting international trade implies involving in the export and import activities. The export and…

Answered: A local economy's market demand for…

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A local economy's market demand for drones is given by Q" = 24 - 4P while supply is given by Q° - 8P.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

3.
A local economy's market demand for drones is given by Q® = 24 - 4P while
supply is given by Q5 = 8P.
Assume that domestic and world economic conditions were such thạt the local economy
started exporting drones. What is the effect of drone exports on local economy's produćer
surplus, consumer surplus and total surplus?
Suppose instead that domestic and world economic conditions change such that it makes
more sense for the local economy to start importing drones. What is the effect of drone
imports on the local coconomy's producer surplus, consumer surplus and total surplus?

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