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Suppose we have a competitive market for a good with domestic demand and supply given by:
P = 310 - .05QD
P = 30 + .03QS
International supply is given by a constant competitive price of P1 = $90.
Finally, suppose that there was no international supply, and that the domestic market given by the above equations was the only market for this good in the world. What export tariff could the government impose to create a global monopoly?
How might there be increase in total spending on a child's education in response to providing a fixed level of education?
In each of the cases listed below determine what this consumer needs to do (in terms of purchasing X and Y) to maximizes their utility.
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