Question: Please solve this as a new question do not pull old replys Smallville, a small economy, producing palm oil mostly. In the market of palmoil,
Please solve this as a new question do not pull old replys
Smallville, a small economy, producing palm oil mostly. In the market of palmoil, domestic demand and domestic supply equations are: P Q andP Q respectively. Smallville embraces free trade and the world price is$ per unit; Suppose the government of Smallville decided to impose tariff so that the new price is $ per unit. The deadweight loss will be hint: identify the two small triangles below the equilibrium; calculate the area:$$$$
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