Unformatted text preview: Justify your answer. 2. Suppose that Cuba suddenly opens up to trade with the rest of the world and finds that the “world price” of sugar is much higher than the domestic (Cuban) price of sugar. Use consumer and producer surplus to answer the following questions: a. What happens to the well-being of Cuban sugar manufacturers? b. What happens to the well-being of Cuban sugar consumers? c. What happens to the well-being of the Cuban economy? 3. Why has the yen become so strong the dollar in the last year or so?...
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This note was uploaded on 04/28/2011 for the course ECON 1101 taught by Professor Rappoport during the Fall '08 term at Temple.
- Fall '08