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The USA is a large country as an importer of Mexican avocados. The USA domestic supply function of avocados is Qs = 20 + 20P
The USA is a large country as an importer of Mexican avocados. The USA domestic supply function of avocados is Qs = 20 + 20P and the USA domestic demand function is QD = 480 - 20P. The Mexico export supply function is Qs = - 40 + 10P. Suppose the USA imposes a specific tariff of $2.5 on avocados. The quantity of avocados imported by the USA is
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