Need help with my Economics question – I’m studying for my class.
Q. 1. Suppose both supply and demand in a market are relatively inelastic. Will a tax placed on the product in market generate a relatively large or small deadweight loss? Why?
Q. 2. If the world price of a good exceeds the domestic price of the good, will the country export or import the good. In this scenario who gain from free trade: Domestic consumers or Domestic producers? Explain.
-All answered must be typed using Times New Roman (size 12, double-spaced) font.
-I’ve attached extra material to help you.
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