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- Answer both questions using a chart and quantitative explanations, as well as written arguments in APA format. To complete this assignment, review cases 7.2.2 and 7.2.3, which start on page 153 (attached). Follow the explanations and the charts. Instead of using letter symbols in the chart, use actual numbers. For example: Instead of using world Price Pw use real numbers, such as $10.
- Examine the effects of liberalizing import quotas on prices, quantities supplied, quantity demanded, and trade in both importers and exporters.Make an assumption about whether your countries can affect the world price.
- Consider the case where a country imposes a complete ban on all trade (imports and exports). Examine the effect of this ban on the welfare of the country.
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