homework assignment

Suppose the United States does not produce any baseball hats domestically but imports them from foreign producers. Initially, demand is @, = 1000 -2p. and supply (from foreign producers) is O. =100 + p. Determine the equilibrium price and quantity. The government then decides that no more than 300 baseball hats should be imported per period and imposes a quota at that level. How does this quota affect the equilibrium price and quantity? Show the solution using a graph and calculate the numerical answer. How might this quota affect the market for cowboy hats ( a substitute good)