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Assume Canada is a small open economy that imports some of the grapes it consumes.
a) Draw a diagram showing the equilibrium under free trade in grapes
b) Show the effects of a $1 per kg tariff on imported grapes.
Show the effect on : imports, Canadian production, consumption, the government's revenue, the change in (Canadian) producer surplus, consumer surplus, and total surplus.
c) What would be the effect of replacing the import tariff with an import quota? Which would be better? Explain.
suppose you know that CLS's MRT of wine of garbage disposal services is 2:1(to obtain more bags of garbage disposal services requires a reduction of one bottle of wine (keep
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Past year both Country homes and City Construction earned $1 million in Net Income. Both companies have asstes of $10 million. Country created a return on equity of 11.1 perce
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