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The world price of wine is below the price that would prevail in the United States in the absence of trade.
a.) Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under free trade.
b.) Now suppose that a tariff is place on the importation of wine into the United States to protect domestic wine producers. What does this do to the price?
c.) Draw a new diagram illustrating the price change as well as the changes to the quantity of imports.
How can this idea be applied to activities of profit making firms and profit loosing companies or to the revenue and costs components of a company's net profit?
Assume that, from an initial equilibrium rank in the offer curve diagram, nation I imposes a tariff on country II's export good at the same time that customers in country II change their tastes toward wanting more of II's export good.
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Sonora Company expects a three year comparative advantage period. Sonora's free cash flow during these three years are estimated to be $5 million, $7 million, and $9 million.
Alu City is a manufacturer of aluminum products for building industry and has experienced a high growth rate due to an increased demand. The corporation shares are currently being traded at 410 cents each share.
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Define Phillips curve suppose the economy's aggregate supply curve is stable, how would an increase in aggregate demand affect the unemployment rate and the inflation rate?
Provide three arguments for trade restrictions. Since economists do not trade restrictions, make the case as an economist against trade restrictions for these three items.
The United States in currently running a large current account deficit. If Congress and the White House decide to enact policies to reduce or eliminate the deficit, what actions should they take? Describe the set of policy options available to the..
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