Assume the domestic supply (Qs) and demand (Qd) for MP3 players in the United States are given by the following equations: Qs = -100+10P Qd = 725 5P Assume the world price is $70 (such that the US exports MP3 players). (1) Solve for the free-trade equilibrium and illustrate your answers by labeling a supply/demand graph of the MP3 market in the United States. That is, solve for: (a) The price of MP3 players in the United States. (b) The quantity of MP3 players produced (Qs) and sold (Qd) in the United States. (c) The consumer and producer surplus in the MP3 market in the United States. (2) Now assume the US (a small country) imposes an export subsidy of $5 per MP3 player. Solve for the new equilibrium and, once again, illustrate your answers by labeling a supply/demand graph of the MP3 market in the United States. That is, solve for: (a) The price of MP3 players in the United States. (b) The quantity of MP3 players produced (Qs) and sold (Qd) in the United States. (c) The consumer and producer surplus in the MP3 market in the United States. (d) The change in government revenue from subsidizing exports. (3) Does the US as a whole gain or lose from the imposition of the $5 export subsidy? Compare your answers to the free-trade equilibrium of (1) and explain. (4) Now assume the US is a large country when it imposes the $5 export subsidy on MP3 players. Explain what effect the export subsidy will have on the world price of MP3 players (dont try to calculate the new world since you cant, just tell me if it increases or decreases and why). Assume that the U.S. is primarily exporting MP3 players to Europe. Explain what effect this change in the world price will have on: (a) European consumers of MP3 players (b) European producers of MP3 players (c) Europe overall

Mainly need help with 3+4 please!!!