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, supply and demand
Comments
Henry, it looks like Jack has weighed in with some help for you over in the Economics blog.