1) What is the free trade price of good Y? 

2) How many units of good Y are traded under free trade?

3)If home country imposes a specific tariff of $15 per unit of good Y imported, what is the price of good  Y that Foreign exporters receive?

4)If home country imposes a specific tariff of $15 per unit of good Y imported, what is the price of good  Y that Home consumers pay?

5)If home country imposes a specific tariff of $15 per unit of good Y imported, how many units of good  Y are traded now?

 

Consider two countries, home and foreign and a single good, Y. Assume that home country imports good Y from foreign country. The import demand curve for good Y in home country is given by: MD = 170 - 2P% and the export supply curve for good Y in Foreign country is given by: EX-PY - 40. =