Demand = 200 - 5q Supply = Q = 40 + 2p (Foreign) and Q = 60+ 2p (Domestic) Step 1: Find Price and Quanity with no Quota. Step 2: Find the Price and Quanity with a Quota = 10. Step 3: Show on graph the change in supply and demand.

Demand = 200 - 5q Supply = Q = 40 + 2p (Foreign) and Q = 60+ 2p (Domestic) Step 1: Find Price and Quanity with no Quota. Step 2: Find the Price and Quanity with a Quota = 10. Step 3: Show on graph the change in supply and demand.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 7PA

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Question

40 +
2p
and Q
and Q = 60+ 2p (Domestic) Step 1: Find Price and
Demand 2005q Supply = Q = 40 + 2p
Quanity with no Quota. Step 2: Find the Price and Quanity with a Quota = 10. Step 3: Show on graph the
change in supply and demand.
(Foreign)
(Foreign)
A

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Step 1: Define quota

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Step 2: Calculate price and quantity without qouta

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Step 3: Calculate price and quantity with quota

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Step 4: Show in graph

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