homework2spring2007 - Economics 102 Homework#2 Spring 2007...

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Economics 102 Homework #2 Spring 2007 Due 02/20/2007 in lecture Directions: The homework will be collected in a box before the lecture. Please place your name , TA name and section number on top of the homework (legibly). Make sure you write your name as it appears on your ID so that you can receive the correct grade. Please remember the section number for the section you are registered in, because you will need that number when you submit exams and homework. Late homework will not be accepted so make plans ahead of time. Good luck! 1. The domestic demand for computers is given by P = 10 – Q. The domestic supply is given by P = Q. The world price of computers is $3. (a) First assume that this country is closed to world trade. Find the equilibrium price and quantity of computers. Calculate the consumer and producer surplus in this case. (b) Now assume that this country is open to world trade. How many computers will they import? Calculate the consumer and producer surplus. Who gains and who
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This note was uploaded on 08/08/2008 for the course ECON 102 taught by Professor Drozd during the Spring '08 term at University of Wisconsin.

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homework2spring2007 - Economics 102 Homework#2 Spring 2007...

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