The United States imports television sets from Japan. The table above contains the U.S. demand and U.S. supply schedules for television sets. The world price of a television set is $600 per set

a. With no trade, what is the domestic price and quantity of television sets?
b. At the world price, what is the quantity of sets demanded in the United States?
c. At the world price, how many sets are produced in the United States?
d. At the world price, how many sets are imported into the United States?
e. What is the opportunity cost of producing the 4-millionth television set in the United States? In Japan?

a. In the absence of trade, the price is $1,000 per television set and the quantity is 4 million sets.
b. At the world price, 8 million sets are demanded in the United States.
c. At the world price, 2 million sets are produced in the United States.
d. At the world price, the quantity of sets imported is 6 million.
e. The opportunity cost in the United States to produce the 4-millionth set is $1,000. The opportunity cost in Japan is $600.