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Draw demand and supply for shoes watching

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Reference no: EM132661354

Suppose in the country of Perfectland, the demand for shoes is given by Qds = 110-2P and the supply for shoes is given by Q = -50+2P.

a. Draw demand and supply for shoes watching the video below. Copy and paste your graph below.

Video à https://www.youtube.com/watch?v=dhONLIo35Tc

INSERT GRAPH HERE.

b. Solve for the autarky equilibrium. Fill in the blanks below.

Autarky price, PA =

Autarky quantity, QA =

c. Suppose Perfectland opens up to free trade and the free trade price of shoes is PW = $30. Solve for the free trade equilibrium. Fill in the blanks below.

Free trade price, PW =

Domestic consumption, Qd =

Domestic production, QS =

Imports of shoes=

d. Suppose Perfectland government imposes a tariff of 10% on shoes. Solve for the trade equilibrium under tariffs. Fill in the blanks below.

Price under tariff, PW +tariff=

Domestic consumption, Qd =

Domestic production, QS =

Imports of shoes=

Tariff Revenue=

Deadweight Loss=       

Reference no: EM132661354

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