QD = 200 - 4P (U.S. Demand)

QS = - 40 + 2P (U.S. Supply)

(a) Calculate (i) quantity demanded, (ii) quantity supplied by US producers, (iii)quantity supplied by

foreign producers (i.e., imports). Show your answers below on your graph of Problem 4.

(b) The world price is $30/unit, and the U.S. government now allows free-trade in and/or out of the

U.S. Calculate (i) consumers' surplus, (ii) producers' surplus, (iii) government cost/revenue and

(iv) deadweight loss under free trade.

(c) With respect to the change from autarky to free trade, calculate the changes in (i) CS, (ii) PS, (iii)

government spending/revenue, and (iv) TS (i.e., DWL/DWG.)

(d) Who would support a policy of moving to free-trade? Who would oppose it?