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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.

i. the terms of trade effect

j. total deadweight loss

k. effect on foreign welfare

l. effect on world welfare

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