Korea’s demand for computers is QK = 2, 000 − Pk Its supply is QK = −200 + Pk China’s demand for computers is QC = 1, 000 − Pc Its supply is QC = Pc 1. Suppose that Korea imposes a specific tariff of $100 on computer imports. Calculate the price of computers in each country and the quantity of computers supplied and demanded in each country. Also calculate the volume of trade
Korea’s demand for computers is QK = 2, 000 − Pk Its supply is QK = −200 + Pk China’s demand for computers is QC = 1, 000 − Pc Its supply is QC = Pc 1. Suppose that Korea imposes a specific tariff of $100 on computer imports. Calculate the price of computers in each country and the quantity of computers supplied and demanded in each country. Also calculate the volume of trade
Chapter12: The Partial Equilibrium Competitive Model
Section: Chapter Questions
Problem 12.8P
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Korea’s demand for computers is
QK = 2, 000 − Pk
Its supply is
QK = −200 + Pk
China’s demand for computers is
QC = 1, 000 − Pc
Its supply is
QC = Pc
1. Suppose that Korea imposes a specific tariff of $100 on computer
imports. Calculate the price of computers in each country and the
quantity of computers supplied and demanded in each country. Also
calculate the volume of trade.
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