Question: Use the figure given below to answer the question. The figure at below shows a country's domestic supply ( S ) and demand curves (
Use the figure given below to answer the question. The figure at below shows a country's domestic supply S and demand curves D for a good, as well as the world price of the good, Pw that a small country faces on the world market. Initially, however, the country is not trading freely, but is instead imposing a tariff on imports of this good that causes the domestic price to be Pd as shown.
Q represents quantity and several areas are labeled dots.
The price and quantity produced before free trade autarky are and
respectively.
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