Suppose Qd=-44*P+869, Qs=35*P+17 for home and Qd*=-44*P+123, Qs*=35*P+39 for foreign. Further suppose that the importing country place a tariff of 0.17 on the product. What is the trade volume to two decimal places?
Suppose Qd=-44*P+869, Qs=35*P+17 for home and Qd*=-44*P+123, Qs*=35*P+39 for foreign. Further suppose that the importing country place a tariff of 0.17 on the product. What is the trade volume to two decimal places?
Chapter18: International Trade And Finance
Section: Chapter Questions
Problem 11SQ
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Suppose Qd=-44*P+869, Qs=35*P+17 for home and Qd*=-44*P+123, Qs*=35*P+39 for foreign. Further suppose that the importing country place a tariff of 0.17 on the product. What is the trade volume to two decimal places?
The CORRECT ANSWER is 377.29 can you show how this is done?
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