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27 a tariff on a product a enhances the economic well

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27.A tariff on a productA)enhances the economic well-being of the domestic economy.B)increases the domestic quantity supplied.C)increases the domestic quantity demanded.D)results in an increase in producer surplus that is greater than the resulting decreasein consumer surplus.
Open-ended questions:Scenario 1:The domestic market demand and supply of wheat in Italy is given by:??š‘€š‘Ž?š‘˜??= āˆ’15? + 120??š‘€š‘Ž?š‘˜??= 5? + 20? ā‰„ 0denotes the domestic price of one kg of wheat in Italy.28.Refer to Scenario 1:Assuming Italy is a closed economy, what is the price of wheat inItaly (i.e., the equilibrium price)?29.Bonus question.Refer to Scenario 1:Assuming Italy is a closed economy, what is themaximum possible total surplus in the wheat market in Italy?
30.Refer to Scenario 1:Now assume Italy opens the economy for trade and assume worldprice of one kg of wheat is 1 euro. What is the number of imports in the wheat market?31.Refer to Scenario 1: Now assume Italy opens the economy for trade and assume worldprice of one kg of wheat is 1 euro. How much are the welfare gains from trade in thewheat market?
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Term
Fall
Professor
Aysel Bandad
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