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find out the International supply, domestic demand, domestic supply, Consumer surplus, Producer surplus.

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.

Compute the customer surplus from parts a and b. Are consumers better or worse off as a result of international trade? describe why.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M918300

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