(a) Explain the meaning of international economics (2 marks). (b) Suppose the elasticity of demand for...

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(a) Explain the meaning of international economics (2 marks). (b) Suppose the elasticity of demand for a computer is -0.6, elasticity of computer supply is 0.4 and the government imposes a tax of Kshs. 100 per computer: Required i) Compute tax on a computer buyer (2 marks). ii) Interprete your answer in question 1b (i) and explain who bears a lower tax burden and why? (4 marks). (c) Critically discuss the gains that arise from international trade (17 marks). (a) Explain the meaning of international economics (2 marks). (b) Suppose the elasticity of demand for a computer is -0.6, elasticity of computer supply is 0.4 and the government imposes a tax of Kshs. 100 per computer: Required i) Compute tax on a computer buyer (2 marks). ii) Interprete your answer in question 1b (i) and explain who bears a lower tax burden and why? (4 marks). (c) Critically discuss the gains that arise from international trade (17 marks).

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a International economics is the study of the economic interactions and relationships between different countries regions or economic blocs It examines the flow of goods services capital labor and tec... View the full answer