Suppose the market for wine in the U.S. is characterized by:Qd = 100 – 20P [Demand]Qs = 20 + 20P...

Question

Suppose the market for wine in the U.S. is characterized by:
Qd = 100 – 20P [Demand]
Qs = 20 + 20P [Supply]
The market for wine in the rest of the world is characterized by:
Qd = 80 – 20P [Demand]
Qs = 40 + 20P [Supply]
Calculate the change in deadweight loss if the U.S. replaces a prohibitive
Answer:
Given market for semiconductors in U.S
Qd = 100 – 20P
Qs = 20 + 20P
In world,
Qd = 80 – 20P
Qs = 40 + 20P
In absence...

Robert · Accepted Answer

Suppose the market for wine in the U.S. is characterized by:
Qd = 100 – 20P [Demand]
Qs = 20 + 20P [Supply]
The market for wine in the rest of the world is characterized by:
Qd = 80 – 20P [Demand]
Qs = 40 + 20P [Supply]
Calculate the change in deadweight loss if the U.S. replaces a prohibitive 
Answer:
Given market for semiconductors in U.S
Qd = 100 – 20P 
Qs = 20 + 20P 
In world,

Suppose the market for wine in the U.S. is characterized by:Qd = 100 – 20P [Demand]Qs = 20 + 20P [Supply]The market for wine in the rest of the world is characterized by:Qd = 80 – 20P [Demand]Qs = 40...

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