Consider a competitive market served by many domestic and foreign firms. The domestic demand for these firms' product isQ^d= 1400 - 1.5P.The supply function of the domestic firms isQ^SD=100 + 0.5P,while that of the foreign firms isQ^SF= 250.

Instructions:Enter your responses for equilibrium price rounded to the nearest penny (two decimal places). Enter your responses for equilibrium quantity rounded to one decimal place.

a. Determine the equilibrium price and quantity under free trade.

Equilibrium price: $______

Equilibrium quantity:_______ units

b. Determine the equilibrium price and quantity when foreign firms are constrained by a 100-unit quota.

Equilibrium price: $________

Equilibrium quantity:________ units

c. Are domestic consumers better or worse off as a result of the quota?

Better off __Yes/No___

Neither better nor worse off ___Yes/No___

Worse off ___Yes/No___

d. Are domestic producers better or worse off as a result of the quota?

Worse off ___Yes/No___

Better off ___Yes/No___

Neither better nor worse off ___Yes/No___