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Posted by Economics | 4 comment(s)
I'm doing this assignment and I'm totally lost,
U.S. :
d= 200 -40p
s= 40 +40p
Rest of the world:
d= 160 -40p
s= 80 +40p
The U.S. govenment imposes a quota of 32 units on its imports. Calculate the magnitude of deadweight loss resulting from the quota under the assumption that the U.S. is a small open economy?
If anyone knows about this it would great if you could help me out!
Keywords: deadweight loss, economics, international trade, supply and demand
Posted by henry hong @ Economics | 2 comment(s)