EC 420 Study Guide - Midterm Guide: Economic Surplus, Italian General Confederation Of Labour, Marginal Revenue
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The following questions have appeared on previous exams covering the material on test 3. This does not exhaust the list of possible exam questions. Also, be aware that if similar questions are asked on future exams, they may be asked with a new twist: the domestic supply and demand for tofu in gargantua are described as follows: The current world price for tofu is pw = 140. Under heavy pressure from domestic tofu producers, congress is considering a tofu tariff of 60. Under a tariff of 60, the world price of tofu will fall to 120. For each part below, show all work and briefly explain your answer: draw a supply and demand diagram to show the effect of the tariff. For each part below, explain your answers briefly: draw unit value isoquants for food and clothing where food is the capital intensive good.
