Econ 201 Assignment
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Q. 1. Suppose both supply and demand in a market are relatively inelastic. Will a tax placed on the product in market generate a relatively large or small deadweight loss? Why?
Q. 2.
If
the world price of a good exceeds the domestic price of the good, will
the country export or import the good. In this scenario who gain from
free trade: Domestic consumers or Domestic producers? Explain.
APA, No plagiarism. at least 150 words for each question
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