10.24. Suppose that in the domestic market for computer chips the demand is Pd " 110 ! Qd

, where Qd is the number of units of chips demanded domestically when the price is Pd

. The domestic supply is Ps " 10 # Qs

, where Qs is the number of units of chips supplied domestically when domestic suppliers receive a price Ps

.

Foreign suppliers would be willing to supply any number of chips at a price of $30. The government is contemplating three possible policies:

Policy I: The government decides to ban imports of chips.

Policy II: Foreign suppliers are allowed to import chips

(with no tariff ).

Policy III: The government allows imports, but imposes a tariff of $10 per unit.

Fill in the table in Figure 10.19, giving numerical answers.