Rebeco Fox Microeconomics International Trade and Tariffs This is the market for "T-shirts" in Demorest, GA. Use the following supply and demand function to find the following (same S and D formula from price controls): 1. Equilibrium price and quantity Demand: P = 25-0.02Q P = 15.4 Q = 480 Supply: P = 1 + 0.03Q Hint: label and the relevant points on the graph (like we did in class). (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. How many shirts will be imported?

Rebeco Fox Microeconomics International Trade and Tariffs This is the market for "T-shirts" in Demorest, GA. Use the following supply and demand function to find the following (same S and D formula from price controls): 1. Equilibrium price and quantity Demand: P = 25-0.02Q P = 15.4 Q = 480 Supply: P = 1 + 0.03Q Hint: label and the relevant points on the graph (like we did in class). (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. How many shirts will be imported?

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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