3. Suppose the domestic demand and supply for vans is as given by Problem 2. The world price of vans is 16 units. Foreign van firms have a production cost of 15 units per van, so they earn a profit of one unit per van. LO 16.7 MEDIUM a)How many vans will be imported, assuming this country trades freely? b)Now suppose foreign van producers are asked ‘voluntarily’ to limit their exports to the home country to half of free trade levels. What will be the equilibrium price of vans in the domestic market if foreign producers comply? Find domestic quantities of vans supplied and demanded. c)How will the ‘voluntary’ export restriction affect the profits of foreign van producers?