(15 pts) The following diagram shows the domestic demand and supply curves in a market. Assume that the world price in t

[answerhappygod]

15 Pts The Following Diagram Shows The Domestic Demand And Supply Curves In A Market Assume That The World Price In T 1 (130.77 KiB) Viewed 33 times

(15 pts) The following diagram shows the domestic demand and supply curves in a market. Assume that the world price in this market is $40 per unit. 60 55 50 45 40 35 30 25 20 15 10 5 200 400 77 Supply Demand 600 800 1000 With no trade allowed, what are the equilibrium price and equilibrium quantity in this market? b. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus? If the country allows free trade, how many units will domestic consumers demand and how many units will domestic producers produce? c. d. If the country allows free trade, will the country import or export this good, and how many units will be imported/exported? If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade? f. If the country allows free trade, by how much do consumer surplus, producer surplus, and total surplus change with trade? g. Suppose the country imposes a $5 per unit subsidy for exported goods. How much are consumer surplus, producer surplus, subsidy expenditure, and total surplus? How much is the deadweight loss?