6 Consider a competitive market served by many domestic and foreign forms. The domestic demand for these firms? product is Qd = 500 ? 1.5P. The supply function of the domestic firm is QSD =50 + 0.5P, while that of the foreign firm is QSF = 250/;a Determine the equilibrium price and quantity under free trade.;b Determine the equilibrium price and quantity when foreign firms are constrained by a 100-unit quota;c Are domestic consumers better or worse off as a result of the quota?;d Are domestic producers better or worse off as a result of the quota?
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