Problem 2.1: Suppose that Domestic's market demand is given by the equation P = 47 3*Qd and market supply is given by P = 14+ 7*Qs (where P is the price, Qd is the quantity demanded, and Qs is the quantity supplied). Domestic markets are perfectly competitive. Domestic faces export supply given by the equation P = 28 + 0*Qe (where Qe is the quantity exported) and is considering imposing a per-unit import tariff. Calculate consumer surplus in autarky. Please report your answer rounded to two decimal places (e.g., 4.256 becomes 4.26).

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Problem 2.1: Suppose that Domestic's market demand is given by the equation P =
47 3*Qd and market supply is given by P = 14+ 7*Qs (where P is the price, Qd is
the quantity demanded, and Qs is the quantity supplied). Domestic markets are
perfectly competitive. Domestic faces export supply given by the equation P = 28 +
0*Qe (where Qe is the quantity exported) and is considering imposing a per-unit
import tariff. Calculate consumer surplus in autarky.
Please report your answer rounded to two decimal places (e.g., 4.256 becomes
4.26).
Transcribed Image Text:Problem 2.1: Suppose that Domestic's market demand is given by the equation P = 47 3*Qd and market supply is given by P = 14+ 7*Qs (where P is the price, Qd is the quantity demanded, and Qs is the quantity supplied). Domestic markets are perfectly competitive. Domestic faces export supply given by the equation P = 28 + 0*Qe (where Qe is the quantity exported) and is considering imposing a per-unit import tariff. Calculate consumer surplus in autarky. Please report your answer rounded to two decimal places (e.g., 4.256 becomes 4.26).
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