Suppose that Supply is given by: Q = -4+1p And demand is also given by: Q = 60 -0.5p Suppose that this is a small, open economy, and is therefore engaging in international trade and taking the world price as given. The world price is $8. Currently, it is an importer of the good in question. Suppose that the government imposes an import quota of 7 units. What will be the domestic price for local consumers?

Suppose that Supply is given by: Q = -4+1p And demand is also given by: Q = 60 -0.5p Suppose that this is a small, open economy, and is therefore engaging in international trade and taking the world price as given. The world price is $8. Currently, it is an importer of the good in question. Suppose that the government imposes an import quota of 7 units. What will be the domestic price for local consumers?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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