Suppose that French Governmentis importing computers from the rest of the worldand exporting agricultural products in orderto increase the availability of this good .

Given the following information aboutFranceand the Foreign country for the computer market:

France:D=200-20P

S=40+20P

Foreign:D=160-20P

S=80+20P

1)Derive French's import demand curve

2)Derive Foreign' s export supply curve

3)Now AllowFranceand foreign to trade with each other, at zero transportation cost. What are the world price and volume of trade under free trade?

4) Toenhancethe export of computersthe foreign country is subsidizingexport with a specific subsidys=$5 on its export of computers,

what is the effects ofexport subsidy on the following:

consumer, producer,government andcountry's welfare in

both countries .

5)Assume that the importing county imposes a specific tariff oft=]5 on computer importsdetermine the effects of tariffin each countryon the Following :

consumer, producer,government andcountry's welfarein

both countries