Domestic demand for a good is QD = 3000 - 25P. The domestic supply of the good is QS = 20P. Foreign producers can supply any quantity at a price (P) of $30

a. What is the domestic equilibrium price and quantity?
b. At this domestic equilibrium price, how much of the good will be supplied by domestic producers and how much by foreign producers?

a. P = $30 and Q = 2250
b. Domestic producers supply 600 units and foreign producers supply 1650 units.

Economics

You might also like to view...

Taxes that are designed to discourage consumption of the taxed good are called _____

a. regressive taxes b. head taxes c. sumptuary taxes d. sales taxes

Economics

The selection of particular products’ production processes

A. determines the output of other products made with those inputs at the same time. B. is part of the distribution problem in an economy. C. is accomplished without regard to profit in a laissez-faire economy. D. depends upon plans for distribution of the products.

Economics