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Unformatted text preview: Midterm #2 (A) October 26,2009 ECON 313 International Economics Name: =r~\~ ID Number:- - - - - - - Good Luck!! You are permitted to only have a writing utensil, a non- programmable calculator, and a straight-edge with you during the exam. Answer all questions fully. Show your work for credit. Be sure to label all curves and points on graphs. I f you feel a graph is appropriate for a question, include one with your answer, even if not explicitly asked for. Be sure to fully discuss your answers. 1. (20 Points) Consider England, which is a small country. England consumes and produces guitars, but it finds that the majority of its guitars come from its neighbor France. The demand and supply of guitars in England are: d Demand: Q = 50 - P s Supply: Q = P Currently, England is importing guitars at a free trade price of $20. The Queen of England is considering imposing a $5 tariff on guitar imports. Calculate total imports, consumer surplus, producer surplus, deadweight loss, tariff revenues, and total surplus before and after the tariff.producer surplus, deadweight loss, tariff revenues, and total surplus before and after the tariff....
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This note was uploaded on 04/07/2011 for the course ECON 303 taught by Professor Staff during the Fall '08 term at Sonoma.
- Fall '08
- International Economics