Question: c. Set up a table in which the rows correspond to scenarios where we change the parameters B and b from 149 500, 1002 in
c. Set up a table in which the rows correspond to scenarios where we change the parameters B and b from 149 500, 1002 in the first row to 112 000, 252, 12 000, 52, 1500, 22, 10, 12, 12250, 0.52, 12375, 0.252, 12450, 0.12, and 12495, 0.012 in the next eight rows. Then report in each row p 1
and x 1
, which are the price and quantity in country 1 in the absence of trade; p* 5 |p 1 5 |p 2
, which is the world price under free trade; X
*
, which is the level of exports under free trade; X
*
1t2, which is the level of exports when t 5 100 is imposed; |p 1
1t2 and |p 2
1t2, which are the prices when a per-unit tariff of t 5 100 is imposed; and the fraction k of the tariff that is shifted to country 1.
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