The market for London cologne in a small country is characterised by the following demand and...

Transcribed Image Text:

The market for London cologne in a small country is characterised by the following demand and supply relation: Qd = 1800 -0.1P and Qs = 0.4 Where: P, Q > 0. The international price of a London cologne is R2 500, and the South African government decides to impose a 10% tariff on all cologne imports. 4.1 4.2 4.3 Illustrate the above market. (5) Which agents of society are losers and gainers? Showing all calculations, calculate their losses and gains from the imposition of a tariff. (10) Briefly explain any two (2) invalid arguments for interventionist trade policies. (5) The market for London cologne in a small country is characterised by the following demand and supply relation: Qd = 1800 -0.1P and Qs = 0.4 Where: P, Q > 0. The international price of a London cologne is R2 500, and the South African government decides to impose a 10% tariff on all cologne imports. 4.1 4.2 4.3 Illustrate the above market. (5) Which agents of society are losers and gainers? Showing all calculations, calculate their losses and gains from the imposition of a tariff. (10) Briefly explain any two (2) invalid arguments for interventionist trade policies. (5)