One of the assumptions made in this chapter was that the U.S. market for sugar was small

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One of the assumptions made in this chapter was that the U.S. market for sugar was small relative to the overall world market for sugar, so that when the United States entered the world market for sugar, and U.S. buyers began to buy imported sugar, the price did not change. If we relax this assumption, how do you think that would affect Figure 9.1? How would the outcome differ from the outcome under the assumption of the relatively small market?
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Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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