Suppose the domestic market demand for cars (in thousands) is given as P = 100 - 2Q and domestic supply is given as P = 10 + Q

If the world price is $20,000, what would the gains from trade be from opening the economy to the international market?

Suppose the government wants to cut imports in half. Explain in detail two different ways they could achieve this goal.

What is the deadweight loss associated with the trade policies detailed in part (b)?

Is one of these policies detailed in part (b) preferred? Explain why or why not.