[SOLVED] Microeconomic – Trade policy

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May 13th, 2022

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In this question, we study the consequences of trade policies on the automobile market. We assume that cars are all similar on the market (in other words, a car is a homogeneous good). The supply of Japanese cars is perfectly elastic at a price pJ = 20. Moreover, the supply of cars made in the US is QSus = p ? 15 for any price larger than 15. Finally, the demand for cars from American consumers is QD = 30 ? 1/2p

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