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Suppose an import quota is imposed on a product. Assume that the original supply and demand curves with free trade are P = 1000 -
Suppose an import quota is imposed on a product. Assume that the original supply and demand curves with free trade are P = 1000 - 5Q for demand and 400 + 5Q for supply.
- Find the price and quantity with the new free trade supply curve.___________________, ______________________
- The domestic supply curve is: P = 500 + 5Q. calculate the domestic supply quantity at the free-trade price.______________________
- Assume that a quota quantity of 10 is imposed on the import of the product. Calculate the new price and quantity with the quota._____________________,_______________________
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