Microeconomics – Application & International Trade

EQUILIBRIUM WITHOUT INTERNATIONAL TRADE Assume: an isolated country only produces steel. Imports and exports of steel are prohibited. Results: domestic price adjusts to clear market. The sum of consumer and producer surplus measures the total benefits that buyers and sellers receive. If country begins international trade, will it be an importer or exporter of steel? … Continue reading Microeconomics – Application & International Trade

The Sugar Tax

The sugar tax is becoming increasingly advocated for in government and promoted by most health professionals and doctors to increase government taxes on such things as sugar and cigarettes. Just because they are correlated to bad health problems. The reality that taxing such things to prohibit intake is otherwise wrong. What about substitute goods and … Continue reading The Sugar Tax