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
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 25P
Related questions
Question
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I need help with 5 & 6 on the paper
![Rebecca
рох
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
P = 15.4
Q = 480
Demand: P = 25-0.02Q
Supply: P = 1 + 0.03Q
Hint: 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff04f14a-c985-4bb5-b641-87576675def5%2F95ec9298-dd9c-4450-9332-76b61d06ae34%2Frmq15o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Rebecca
рох
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
P = 15.4
Q = 480
Demand: P = 25-0.02Q
Supply: P = 1 + 0.03Q
Hint: 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.
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