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Unformatted text preview: light bulbs. Figure 1 2. The domestic demand curve, domestic supply curve, and world supply curves for a good are given in Figure 1. All the curves are linear. Initially, the country allows imports. Then imports are banned. Calculate how consumer and producer surplus change because of the ban. Is the country better off with the ban on imports? (Also, think of what a tariff, subsidy or a quota system would do to this) 25 25...
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This test prep was uploaded on 03/25/2008 for the course ECON 425 taught by Professor Watugala during the Summer '06 term at Texas A&M.
- Summer '06