I need help with 5 & 6 on the paper RebeccaрохMicroeconomicsInternational Trade and TariffsThis is the market for "T-shirts" in Demorest, GA. Use the following supply and demand function to find thefollowing (same S and D formula from price controls):1. Equilibrium price and quantityP = 15.4Q = 480Demand: P = 25-0.02QSupply: P = 1 + 0.03QHint: label and the relevant points on the graph (like we did in class).How many shirts will be imported?5.What is the consumers surplus when trade is allowed?6. What is the producer surplus when trade is allowed?(We did this already.)Suppose now the "T-shirt" market is open to international trade. The world price for "T-shirts" is $7.Now that trade is allowed, find the:2. Number of shirts consumers want to buy at the world price.3. Number of shirts domestic firms will produce at the world price.4.

Answered: Image /qna-images/answer/95ec9298-dd9c-4450-9332-76b61d06ae34.jpg

Hint: label and the relevant points on the graph (like we did in class). Suppose now the "T-shirt" market is open to international trade. The world Now that trade is allowed, find the: 2. Number of shirts consumers want to buy at the world price. 3. Number of shirts domestic firms will produce at the world price. 4. How many shirts will be imported? 5. What is the consumers surplus when trade is allowed? 6. What is the producer surplus when trade is allowed? S

Hint: label and the relevant points on the graph (like we did in class). Suppose now the "T-shirt" market is open to international trade. The world Now that trade is allowed, find the: 2. Number of shirts consumers want to buy at the world price. 3. Number of shirts domestic firms will produce at the world price. 4. How many shirts will be imported? 5. What is the consumers surplus when trade is allowed? 6. What is the producer surplus when trade is allowed? S

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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