1. If the government limits the number of imports to 100 units of good A, calculate the new price.2. Calculate the new domestic quantity supplied after the quota.3. Calculate the new domestic quantity demanded after the quota. 2. The domestic demand curve forgood A in a small nation is quantitydemanded = 200 - 2P, and thedomestic supply curve is quantitysupplied = 2P. If the country opens upits economy to trade and imports eachunit of good A for RM10, market price= 50, market quantity 100=, consumersurplus = 2500, producer surplus =2500.

1. If the government limits the number of imports to 100 units of good A, calculate the new price. 2. Calculate the new domestic quantity supplied after the quota. 3. Calculate the new domestic quantity demanded after the quota.

1. If the government limits the number of imports to 100 units of good A, calculate the new price. 2. Calculate the new domestic quantity supplied after the quota. 3. Calculate the new domestic quantity demanded after the quota.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 9PA

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Question

2. The domestic demand curve for
good A in a small nation is quantity
demanded = 200 - 2P, and the
domestic supply curve is quantity
supplied = 2P. If the country opens up
its economy to trade and imports each
unit of good A for RM10, market price
= 50, market quantity 100=, consumer
surplus = 2500, producer surplus =
2500.

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