Question: Pipe organs are both domestically manufactured and imported. Demand (E) for these domestic instruments can be found in the following equation where P is the
Pipe organs are both domestically manufactured and imported. Demand (E) for these domestic instruments can be found in the following equation where P is the price of the product (in thousands of euros) and Q is its quantity: = = - . The supply (F) of domestic organs on organs is according to the following equation = = + and world market prices is 15 euros per organ.
1) You already solved this part. SO DONT SOLVE THIS PART !!:) (Find based on international trade: a. produced domestic quantity b. sold quantity & price d. imported quantity e. producer Surplus & consumer Surplus g. the total profit of the transaction , h. welfare loss ) !dont solve this part, it's done.
Please solve the following questions.
2) If the government prevents international trade, what will then be ...
a. produced domestic quantity
b. sold quantity & price
d. consumer Surplus & producer Surplus
f. the total profit of the transaction
g. welfare loss?
3) What happens if the government imposes a 3 euro customs duty (taxes) on each imported unit based on the situation in item 1)
a. produced domestic quantity b. sold quantity c. price ?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
