Suppose in the country of Perfectland, the demand for shoes is given by Q^d = 110-2P and the supply for shoes is given by Q^s = -50+2P.

a.Draw demand and supply for shoes watching the video below. Copy and paste your graph below.

Video https://www.youtube.com/watch?v=dhONLIo35Tc

INSERT GRAPH HERE.

b.Solve for the autarky equilibrium. Fill in the blanks below.

Autarky price, P_A= $________________

Autarky quantity, Q_A = _________________

c.Suppose Perfectland opens up to free trade and the free trade price of shoes is P_W = $30. Solve for the free trade equilibrium. Fill in the blanks below.

Free trade price, P_W= $________________

Domestic consumption, Q^d = _________________

Domestic production, Q^S = _________________

Imports of shoes=_________________

d.Suppose Perfectland government imposes a tariff of 10% on shoes. Solve for the trade equilibrium under tariffs. Fill in the blanks below.

Price under tariff, P_W +tariff= $________________

Domestic consumption, Q^d = _________________

Domestic production, Q^S = _________________

Imports of shoes=_________________

Tariff Revenue=_________________

Deadweight Loss=