2. Consider a model with two countries, France and Germany. France exports wine to Germany,and Germany exports beer to France. In each country, the demand for wine is given by the demandcurve QP = 100 - P", where QP is the quantity demanded and P" is the price of wine. In eachcountry, the demand for beer is given by the same demand curve, i.e., Q = 100 - PB, where QP isthe quantity demanded and P³ is the price of beer. The supply of wine in France is given by QS =2P", where QS is the quantity supplied, and the supply of wine in Germany is given by QS = pw.The supply of beer in France is given by QS = P², and the supply of beer in Germany is given byQS=2PB. Suppose the government of France imposes a $10 per unit import tax on beer. Find theworld price of beer, the domestic price in France, and the tariff revenue collected by the Frenchgovernment under this policy.

Demand for Wine in each Country : Qd = 100 - Pw Demand for Beer in each Country : Qd = 100 - Pb…

. Consider a model with two countries, France and Germany. France exports wine to Germ nd Germany exports beer to France. In each country, the demand for wine is given by the dem urve QD 100 - P", where QP is the quantity demanded and p" is the price of wine. In ountry, the demand for beer is given by the same demand curve, i.e., QP-100-PB, where he quantity demanded and PB is the price of beer. The supply of wine in France is given by p", where Q is the quantity supplied, and the supply of wine in Germany is given by QS= The supply of beer in France is given by QS = P, and the supply of beer in Germany is give 2S-2PB. Suppose the government of France imposes a $10 per unit import tax on beer. Find

. Consider a model with two countries, France and Germany. France exports wine to Germ nd Germany exports beer to France. In each country, the demand for wine is given by the dem urve QD 100 - P", where QP is the quantity demanded and p" is the price of wine. In ountry, the demand for beer is given by the same demand curve, i.e., QP-100-PB, where he quantity demanded and PB is the price of beer. The supply of wine in France is given by p", where Q is the quantity supplied, and the supply of wine in Germany is given by QS= The supply of beer in France is given by QS = P, and the supply of beer in Germany is give 2S-2PB. Suppose the government of France imposes a $10 per unit import tax on beer. Find

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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