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Please help me answer this microeconomics question. Thank you! Suppose LIS demand for steel is P = 120 0.2qd, and domestic (US) supply is P
Please help me answer this microeconomics question. Thank you!
Suppose LIS demand for steel is P = 120 0.2qd, and domestic (US) supply is P = 10 + 0.1qs0 and foreign supply is P = 10 + 0.05qsvo a. b. d. Determine the total supply curve (foreign and domestic) for steel. What is the equilibrium price and quantity of steel with no trade restrictions? Now suppose that a quota of 100 units of foreign steel is imposed. What is the equilibrium price and quantity of steel? On a single graph, show situations from b and c, including the relevant supply curves. Who wins and who loses with the quota from part c?
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