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Suppose the domestic demand and supply for bookends in a small open economy are given by the following equations: P = 75 - Qd P = 30 + Qs, where Qd and Qs are in millions of bookends. (a) Suppose the world price is $41 per unit. Calculate the deadweight loss when the government inhibits free trade by collecting a tariff of $4 per unit. (b) If the government decides to impose a quota in the amount of 13 units instead of the $4 tariff, what is the effective price in the market? (c) Given your answers to a and b, which policy imposes the greater loss? Does your answer depend on whether the quota licenses are given to local firms or to foreign firms? Explain.
your market research group estimated the following demand curve for gadgets the product your company produces and
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An economy is currently in equilibrium and the following figures refer to elements in its national accounts and what is the current equilibrium level of GDP and what is the level of injections
How does the article support the Simple Circular Flow model and how does the article support the Law of Supply and Demand?
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write a 1050- to 1400- word paper where you explain the following in the context of the simulation. one note these word
Suppose the price of c increases to 2, while income remains constant and what happens to the consumption of c and h? Are c and h substitute goods, complementary goods, or neither?
When you are given the units of resource, total product, and marginal product. what do you need to find to determine how many resources the firm will employ.
According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company.
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