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Brief: Tari , Subsidy, and the Direction of Trade Country A is a small country when it comes to trade in fish- they can import or export fish at a fixed world price, but their trade flows cannot affect the equilibrium price in the world market. Currently, fish is trading at $500 per ton in the world market. The demand and supply functions in country A are: D = 8000 P; S=4P; where D is the quantity demanded, S is the quantity supplied, and P is the price per ton of fish. How many tons of sh will country A import in a free trade equilibrium? What is the chang
Brief: Tari , Subsidy, and the Direction of Trade Country A is a small country when it comes to trade in fish- they can…