Suppose the Domestic Supply and Demand for Leather Boots in Canada

Suppose the domestic supply and demand for leather boots in Canada are given by the following equations:
Q_S = 25 + 10P
Q_D = 925 - 5P
a.In the absence of international trade in leather boots,what will the domestic price be
b.In the absence of international trade in leather boots,what will the domestic quantity be
c.If Canada could trade leather boots freely with the rest of the world at the price of $90,how many leather boots will be produced in Canada
d.If Canada could trade leather boots freely with the rest of the world at the price of $90,how many leather boots will be purchased in Canada
e.If Canada trades leather boots freely with the rest of the world at a price of $90,does Canada import or export leather boots
How many
f.In the absence of trade,what is the consumer surplus and producer surplus in Canada for the market for leather boots
g.If Canada could trade leather boots freely with the rest of the world at the price of $90,what is the consumer surplus and producer surplus in Canada in the market for leather boots
h.What is the change in total surplus after the opening of free trade?

Correct Answer:

Verified

a.Q_S = Qd; P* = $60
b.Q* = 625
c.Q_S = 25 +10...

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