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Business, 17.12.2021 03:00 katherinemartinez173

Consider the perfectly competitive wheat sector in Pakistan. To begin with, consider that the economy is closed to trade. The government imposes a consumption tax of $10 per unit, consumers pay $20 per unit and the equilibrium quantity sold is 10,000 units. Demand elasticity is 2 and supply elasticity is 1. The government then removes the consumption tax. What would be the autarky consumption and production levels in this economy (10 points)

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