Part I: Welfare Analysis of Small Country Tariff Assume the U. is a small country in the market for flip-Flops . It produces flip- flops domestically...
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- Attachment 2
- Attachment 3
Part I: Welfare Analysis of Small Country TariffAssume the U. S. is a small country in the market for flip-Flops . It produces flip- flops domestically , andalso imports them from the rest of the world , where the market price for flip - flops is $5 per pair . In theU. S., supply and demand equations for flip - flops are :95 = 10 P USQ0 = 105 - 5 P USWhere :"Q' & Q' are the quantity of flip - flops supplied and demanded , respectively , inthousands of pairs per week;.P is the price per pair of flip - flops .
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