Zabibstan is a small economy that currently operates as an autarky.In the market for raisins, domestic demand and domestic supply can be represented as and where P is the price per ton of raisins and Q is the quantity of raisins measured in tons.

Domestic demand: P = 5,000 - 0.5QD

Domestic supply: P = 500 + QS

Fill in the figures for Q demanded and Q supplied in the table, and plot the domestic demand and the domestic supply curves below.

P Q demanded Q Supplied

5000

4500

4000

3500

3000

2500

2000

1500

1000

Question 1: Under autarky the equilibrium quantity is QA = ______ tons, and the equilibrium price is PA = $______ per ton.

A. 4000 2500

B. 3500 3000

C. 3000 3500

D. 2500 4000

Question 2: Under autarky total surplus is $________ million.

A. 6.00 million

B. 6.75 million

C. 7.00 million

d. 7.25 million

The world price of raisins is PW = $1,500, Draw diagram

Question 3: Assume all international trade barriers for raisins are removed.Domestic quantity demanded at the world price is QD = _____ tons, and the domestic quantity supplied is QS = _____ tons.

A. 7,000 1000

B. 6,000 1500

C. 5000 2000

D. 4000 3000

Question 4: The quantity of raisins imported is Q = _______.

A. 1000 tons

B. 3000 tons

C. 4500 tons

D. 6000 tons

Question 5: With the world price and imports, consumer surplus is $_______ million and producer surplus is $______ million.

A. 11.50 1.00

B. 12.25 0.50

C. 13.00 1.50

D. 13.25 0.50