Question
a) Under free trade, the quantity of smartphones produced by local producers in Country A is 12390 per year and the quantity of smartphones bought
a) Under free trade, the quantity of smartphones produced by local producers in Country A is 12390 per year and the quantity of smartphones bought in Country A is 79422 per year. After the imposition of an import quota of X units per year, the quantity of smartphones produced by local producers in the aforementioned country is 41779 per year and the quantity of smartphones bought in the aforementioned country is 66994 per year. What is the value of X?
b) Under autarky, the equilibrium quantity of chairs in India is 101532 per year. Once free trade is introduced with the world, quantity of chairs produced in India is 164428 per year and quantity of chairs purchased by Indian citizens is 68738 per year. What is the volume of exports of chair from India under free trade?
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