Question

Please answer all questions below and provide explanations.

Demand and Supply TV Schedule

Total Price of TVs In US $	Quantity demanded	Quantity Supplied
600	0	60
500	10	50
400	20	40
300	30	30
200	40	20
100	50	10
0	60	0

Based on the provided figures in the above table

A) Under no international trade (domestic free market)

1) Determine the equilibrium price and quantity of TV. (This is in a closed economy)

2) calculate the amount of consumer and producer surplus

B) Under an open economy:

1)     determine the producer and consumer surplus when price of TV is reduced by $200 from the original equilibrium to a new equilibrium due to free trade with the outside world

2)     determine the number of imported TV sets

3)     what is the size of domestic TV products?

C) Under tariff regime when the government applies a tariff of $100 on each imported TV

1)     determine the consumer and producer effect

2)     the total amount of revenue the government collects

3)     determine the size of   domestic and imported products

4)     Summarize in one paragraph how the three scenarios affect the consumer, producers, government, and the overall economy. After going over the above calculation, do you think trade barrier will benefit the country applying such measure? Discuss.

Answer 1