The domestic demand for o ce desks is given by P = 300 − 2Q while the domestic supply byP = 90 + 3Q. The foreign supply is given by P = 150.
- Solve for the equilibrium quantity purchased in a country open to trade and illustrate and nd the amounts supplied by domestic and foreign suppliers.
- If the government now imposes a tari of $15 per unit on the foreign made o ce desks, illustrate the impact and determine the domestic quantity produced and quantity imported.
- nd the deadweight losses associated with the imposition of the tariff