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Econ 201 Assignment

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. Ifthe 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.APA, No plagiarism. at least 150 words for each question

College of Administrative and Financial Sciences
Assignment 2
Deadline: 9/10/2019 @ 23:59
Course Name: Macroeconomics
Student’s Name:
Course Code: ECON201
Student’s ID Number:
Semester: I
CRN:
Academic Year: 1440/1441 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/30
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Assignment Question(s):
(Marks:30)
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? [15 Marks]
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. [15 Marks]
Answer:

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