Show the equilibrium price and quantity in that market

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Reference no: EM133328035

Question: This question is showing the effect graphically.

(a) Show an economy that practice Auterky. Show the equilibrium price and quantity in that market (feel free to use any good you'd like).

(b) Now, on that same graph, draw a new world supply considering a world price that is lower than the domestic price. What will happen in this market (make sure to talk about the effect on domestic consumers, domestic producers, international consumers, and international producers)? Show graphically how many goods will be imported or exported.

(c) Repeat your graph from part a with; a icountrypracticing Autarky. Now, draw a new world supply considering a world price that is higher lth n the domestic price. What will happen in this market (make sure to talk about the effect 1ion domestic consumers, domestic producers, international consumers, and international produCersi)?' Show graphically how many goods will be imported or exported.

(d) Finally, add a tariff to one of your graphs above (you can do a separate graph instead if you'd like). What will the effect of this tariff have? Explain.

Reference no: EM133328035

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