Please Show Each and Every Working VERY CLEARLY. There are NO multi-questions here, only just multi-PART questions which are CONNECTED to each other, and hence, Please do NOT Leave any, Thank You!Please Answer (ii) Q3.Sugar, which is an essential product in Sri Lanka and other countries, has differentdemand and supply curves in different countries due to the difference in technology,location, weather, people consumption patterns, preferences etc. Assuming that the supplyand demand curves in the Sri Lankan sugar industry are: (Assume the local price is also indollars ($)Supply of Sugar in Sri Lanka (Unit: 1000 KGs) Qs = PDemand of Sugar in Sri Lanka (Unit: 1000nKGs) Qd = 4 – P (i) Calculate the equilibrium price and quantity in the domestic market of Sri Lanka.(ii) Calculate the price elasticity of demand at the equilibrium price(iii) As a policy maker, if you decided to reduce price, how it affects the income of localsugar producers(iv) In 2020 the price of the world sugar market is $1.50. Assuming a $1.00 tariff per KG :no other trade barriers, show the equilibrium of the sugar market in Sri Lanka.(v) In 2021, if the government reduces tariff by $0.50 per KG, how does it affect Sri Lanksociety (consumers, local producers and the government)?(vi) Without introducing tariffs, how would the government support the local sugarproducers in a liberalized economy?(In addition to all calculations, draw the supply and demand curves to explain your answerin each section)voITAVIMAX

Since you have asked to solve the second part so I am answering the second only. GIven…

Q3.Sugar, which is an essential product in Sri Lanka and other countries, has differer demand and supply curves in different countries due to the difference in technology location, weather, people consumption patterns, preferences etc. Assuming that the suppl and demand curves in the Sri Lankan sugar industry are: (Assume the local price is also in dollars ($) Supply of Sugar in Sri Lanka (Unit: 1000 KGs) Qs = P Demand of Sugar in Sri Lanka (Unit: 1000NKGS) Qd = 4 – P

Q3.Sugar, which is an essential product in Sri Lanka and other countries, has differer demand and supply curves in different countries due to the difference in technology location, weather, people consumption patterns, preferences etc. Assuming that the suppl and demand curves in the Sri Lankan sugar industry are: (Assume the local price is also in dollars ($) Supply of Sugar in Sri Lanka (Unit: 1000 KGs) Qs = P Demand of Sugar in Sri Lanka (Unit: 1000NKGS) Qd = 4 – P

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 2E

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