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can i please get a solution on how to do the parts of question c Demand, Supply & Trade [ 1 0 Points ] Suppose
can i please get a solution on how to do the parts of question c
Demand, Supply & Trade Points
Suppose that domestic market demand and market supply for a good are given by the following equations:
aPts What is the competitive equilibrium in this market without trade
bPts What are Consumer and Producer Surplus at the equilibrium you found in part a
onsumer and Producer Surplus the equilibrium you found part
c Using the same Demand and Supply quations above, now suppose the government opens its borders to trade and the world price of the good is $ Calculate the following:
Pt The price in the domestic market
Pt The quantity supplied domestically
The quantity demanded domestically
The quantity imported
Hint: Use the Demand & Supply equations I've given you above
d Select the correct answers:
Pt Does Total Surplus CSPS rise or fall in this case when the government opens its borders to trade?
Pt Who benefits more in this case from the decision to open the country's borders to trade?
tabletableTOTAL SURPLUSFALLStableDOMESTICPRODUCERS
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