Calculate the equilibrium price, quantity produced and demanded domestically, tariff revenue, and dead weight loss.
International trade 3.1 Suppose the lumber market described in 2.1 was closed to the rest of the world. Now it opens to trade and the world price of lumber is 20. Compute the equilibrium price, quantity supplied by domestic producers, and quantity demanded by domestic consumers. 3.2 Use a demand and supply graph to show […]