two question in macroeconomie cours .

two question in macroeconomie cours ..

I’m stuck on a Economics question and need an explanation.

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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?

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.

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two question in macroeconomie cours .

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