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Mathematics, 18.12.2021 16:10 v4leriaaa
Suppose that the demand function for Japanese cars in the UK is such that
annual sales of cars in thousands of cars) will be 250 - 2P, where P is the price
of Japanese cars in thousands of GBP.
(d) If the supply schedule is horizontal at a price of GBP 5000, what will be
the equilibrium number of Japanese cars sold in the UK?
(5 points
(e) Suppose that in response to pressure from UK car manufacturers, the UK
imposes an import duty on Japanese cars in such a way that for every car
exported to the UK the Japanese manufacturers must pay a tax to the UK
government of GBP 2000. How many Japanese automobiles will now be sold
in the UK?
(5 points)
(f) How much revenue will the UK government collect with this tariff?
(5 points)
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Answers: 2
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Suppose that the demand function for Japanese cars in the UK is such that
annual sales of cars in...
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