3.A local economy's market demand for drones is given by Q® = 24 - 4P whilesupply is given by Q5 = 8P.Assume that domestic and world economic conditions were such thạt the local economystarted exporting drones. What is the effect of drone exports on local economy's produćersurplus, consumer surplus and total surplus?Suppose instead that domestic and world economic conditions change such that it makesmore sense for the local economy to start importing drones. What is the effect of droneimports on the local coconomy's producer surplus, consumer surplus and total surplus?

Conducting international trade implies involving in the export and import activities. The export and…

Answered: A local economy's market demand for…

Business

Economics

A local economy's market demand for drones is given by Q" = 24 - 4P while supply is given by Q° - 8P.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 7PA

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