EBK PRINCIPLES OF ECONOMICS
7th Edition
ISBN: 8220102958395
Author: Mankiw
Publisher: CENGAGE L
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Chapter 9.2, Problem 2QQ
To determine
The impact of international trade on total surplus.
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I asked this question in an earlier assignment; It was a bonus question about price floors and tariffs. I’m curious if your answers have changed.
Would tariffs on imported wine be a price floor?
Why does the efficiency of an import tariff depend on the price elasticity of demand?
Korea’s demand for computers isQK = 2, 000 − PkIts supply isQK = −200 + PkChina’s demand for computers isQC = 1, 000 − Pc
Its supply isQC = Pc1. Suppose that Korea imposes a specific tariff of $100 on computerimports. Calculate the price of computers in each country and thequantity of computers supplied and demanded in each country. Alsocalculate the volume of trade.
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