MACROECONOMICS IN MODULES
5th Edition
ISBN: 9781319245368
Author: KRUGMAN
Publisher: MAC HIGHER
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Chapter 5, Problem 7P
To determine
Concept Introduction:
Autarky
World Price: It is the equilibrium price at which export demand curve intersects import supply curve. It is equilibrium price with trade.
Domestic Demand Curve: The curve which shows how the quantity demanded by changes due to change in the price when there is no trade. It is negatively sloped curve.
Domestic Supply Curve: The curve which shows how the quantity supplied changes due to change in the price when there is no trade It is positively sloped curve.
Tariff: It imposes restriction on the goods that are imported. It is an indirect tax levied on the goods in case of import and export.
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MACROECONOMICS IN MODULES
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