- Can I Get Some Detailed Explanation For This Question 1 (77.39 KiB) Viewed 36 times
Can i get some detailed explanation for this question?
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answerhappygod
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Can i get some detailed explanation for this question?
Can i get some detailed explanation for this question?
Q2. There is a small country A with its domestic demand (D) and supply (S) for product Y being D = 120-P and S = P where P denotes the price of product Y in country A. The international price of product Y is $20. The government of Country A imposes an import quota on product Y of 40 units (the import of product Y is allowed up to 40 units) and auctions off the import license (thus, collecting the quota rent as a quota revenue). Calculate the consumer surplus, producer surplus, and the quota revenue under this quota. Consumer surplus = Producer surplus = Quota Revenue =
Q2. There is a small country A with its domestic demand (D) and supply (S) for product Y being D = 120-P and S = P where P denotes the price of product Y in country A. The international price of product Y is $20. The government of Country A imposes an import quota on product Y of 40 units (the import of product Y is allowed up to 40 units) and auctions off the import license (thus, collecting the quota rent as a quota revenue). Calculate the consumer surplus, producer surplus, and the quota revenue under this quota. Consumer surplus = Producer surplus = Quota Revenue =