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D^Home(p)=175-2p; S^Home(p)=25 p Here price is in $ per unit. Let Rest-of-World supply be given by p^RoW=30 i) (3 points) Find the Home country autarky
D^Home(p)=175-2p; S^Home(p)=25 p Here price is in $ per unit. Let Rest-of-World supply be given by p^RoW=30 i) (3 points) Find the Home country autarky price and quantity. ii) (4 points) Find Home market autarky consumer surplus and producer surplus. iii) (4 points) Find world free market price (1 point) and the level of trade (3 points) by the Home country. iv) (3 points) At this world free market price level, find Home production. A $7/unit tariff is now placed on imports. v) (6 points) Calculate trade level (4 points) and tariff revenue (2 points) under this revised market situation. v) (10 points) Calculate domestic production (4 points) and also calculate change in Home producer surplus (6 points), when compared with no-tariff free trade
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