Assume that the Australian consumers' demand for computers is given by:

= 3,000 0.5

where is the annual quantity of computers demanded and is the price per computer in dollars. The supply of computers by domestic Australian producers is

= 1,000 + 0.5

where is the annual quantity of computers supplied.

a. Assuming that the Australian economy is closed to trade, find the equilibrium price and quantity in the Australian computer market? (2.5 Marks)

b. Assume the economy opens to trade. If the word price of computers is $ 1,500, calculate annual Australian consumption, production and imports of computers? (2.5 Marks)

c. At the request of domestic producers, the Australian government imposes a tariff of $300 per imported computer. Calculate Australian consumption, production and imports of computers after imposing the tariff. How much revenue does the tariff raise for the government? (2.5 Marks)

d. Assuming that government imposes an import quota of 400 computers. Calculate the equilibrium price in the domestic computer market, as well as the quantities produced by domestic firms and purchased by domestic consumers? (2.5 Marks)