Microeconomics (2nd Edition) (Pearson Series in Economics)
Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
Question
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Chapter 8, Problem 8P

(a)

To determine

The pounds of cheese exported from state W.

(b)

To determine

The area representing the consumer surplus. Also, whether the consumer’s surplus increased or not, in comparison to the domestic market.

(c)

To determine

The area representing the producer surplus. Also, whether it is increased or not, in comparison to the domestic market.

(d)

To determine

The winner and loser from free trade in state W.

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