1. In a small economy, the demand and supply of organic olive oil are given by the following functions: Qd=120 000-1000P and P=20+Qs/9000, where P is the price per liter, in euros. The price of olive oil of similar quality in other countries is 10 euros per liter.
   1. Complete the table below and show the calculation of how the answer was derived

	Autarky	Free trade	Trade constrained by an import tariff of 8 EUR per liter.
Domestic consumption
Domestic production
Government revenues

Answer rating: 100% (QA)

To find the values in the table for autarky free trade and trade constrained by an import tariff of 8 EUR per liter we need to solve for the equilibri... View the full answer