Market supply and market demand curves for good

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Graph the market supply and market demand curves for a good or service without world trade. Identify the new price and quantity when the good or service is introduced to the world market. Using a world market without tariffs or quotas, identify the new market equilibrium when these restrictions are imposed, using the same graph as Step 1. Identify who gains and who loses from the tariff. How would you justify international trade restrictions? What role do markets play within global trade to create net gains for the economy? Analyze the exchange rate for the U.S. dollar. Estimate the change in the dollar exchange rate when expected inflation and economic growth in the U.S. change relative to that in the EU. Analyze the intervention required by a central bank to maintain a desired exchange rate using the same supply and demand graph for U.S. dollars.

Reference no: EM131112631

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