Description
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Attached.
Running Head: ECONOMICS CONCEPTS
1
Economics Concepts and Explanations
Author’s Name
Saudi Electronic University
2
ECONOMICS CONCEPTS
Assignment Question(s):
Q. 1. Suppose both supply and demand in a market are relatively inelastic. Will a tax placed on
the product in the 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 gains from free trade: Domestic consumers or
Domestic producers? Explain.
Answer:
Q. 1
The tax p...