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2. Suppose that Economica is a large country. The export supply curve is as follows Price    ...

2. Suppose that Economica is a large country. The export supply curve is as follows

Price     Quantity

60        60

80       120

100       180

120       240

Assume that Economica imposes a $20 tariff on imported oil. Assume that the world price of oil is initially $80.

a. Graph the import demand and export supply curves

Calculate

b. the price of oil in Economica

c. the price of oil in the Rest of the World

d. The change in producer surplus

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