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The equation for the demand and supply curves for writing paper in Belgium is: Demand: P...

The equation for the demand and supply curves for writing paper in Belgium is:
Demand: P = 700 – 2QD Supply: P = 40 + 0.2QS
a) Find out the equilibrium price and quantity if there is no international trade?
b) What are the equilibrium quantities for Belgium if the nation can trade freely with the rest of world at a price of 120?
c) What is the effect of shift from autarky to free trade on Belgian consumer surplus?
What is the total national gain or loss for Belgium due to this trade?
Determining equilibrium quantities-supply and demand
International Economics
Business   Economics   
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