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Market Entry and Trade Weighted Import Costs  Form

Market Entry and Trade Weighted Import Costs Form

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we're told sugar is freely traded in the world market assume that a country lorryland is a price taker in the world market for sugar some of the sugar consumed in lower land is produced domestically while the rest is imported the world price of sugar is two dollars per pound the graph below shows lower lands sugar market and p sub w represents the world price so we see our domestic demand we see our domestic supply and then we see the world price all right now let's try to answer the questions that they have given us at the world price of two dollars per pound how much sugar is loreland importing so pause this video and see if you can figure that out on your own all right now let's do it together so at first you look at your domestic demand and see well what would the domestic demand be at the world price so that would be where these two lines intersect so the domestic demand at the world price would be 14 million pounds you might be tempted to put 14 million po

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