Levels Tought:
Elementary,Middle School,High School,College,University,PHD
Teaching Since: | Apr 2017 |
Last Sign in: | 236 Weeks Ago, 6 Days Ago |
Questions Answered: | 12843 |
Tutorials Posted: | 12834 |
MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
The nation of Acirema is “small” and unable to affect world prices. It imports peanuts at
the price of
$10
per bag. The demand and supply curves are:
D = 400 −10P S= 50 + 5P.
Determine the free trade equilibrium. Then calculate and graph the following effects of an
import quota that limits imports to 50 bags.
1. The increase in the domestic price.
2. The quota rents.
3. The consumption distortion loss.
4. The production distortion loss.
-----------