Hi can you please help me with the calculations and working?Question 1 Assume D: p=2-q and S: p=q are demand and supplyWhat's the autarky equilibrium price and quantity, consumer surplus, producer surplus and total welfare?Suppose the world price is pw=3 and that local firms can sell as much as they want at that price; what is consumer surplus and producer surplus?Has the ability to trade at the world prices increased welfare? By how much?

Autarky equilibrium means there is no international trade and domestic equilibrium reaches at the…

Answered: Assume D: p=2-q and S: p=q are demand…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Hi can you please help me with the calculations and working?

Question 1 Assume D: p=2-q and S: p=q are demand and supply

What's the autarky equilibrium price and quantity, consumer surplus, producer surplus and total welfare?
Suppose the world price is pw=3 and that local firms can sell as much as they want at that price; what is consumer surplus and producer surplus?
Has the ability to trade at the world prices increased welfare? By how much?

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