A small country's demand curve is given by Q-31-2P and its supply curve is given by Q-2P- 17. If the world price under free trade is $11, then what is the prohibitive specific import tariff for this economy (i.e. the tariff that would reduce net exports to zero)?

A small country's demand curve is given by Q-31-2P and its supply curve is given by Q-2P- 17. If the world price under free trade is $11, then what is the prohibitive specific import tariff for this economy (i.e. the tariff that would reduce net exports to zero)?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 55P: Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply...

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Question

A small country's demand curve is given by Q 31-2P and its supply curve is given
by Q= 2P- 17. If the world price under free trade is $11, then what is the prohibitive
specific import tariff for this economy (i.e. the tariff that would reduce net exports to
zero)?

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