In the absence of a quota what is the equation for the, Ask an Expert

Economics

Assume the supply of wine by domestic firms is QSD = 5 + P and the supply of wine by foreign firms is QSF = 5 + P. The domestic demand for wine is QD = 40 - P.

a. In the absence of a quota, what is the equation for the total supply of wine? Show your work.

b. What are the equilibrium price and quantity of wine? Show your work.

c. Suppose a quota of 5 units is imposed. What is the new equation for the total supply of wine? Show your work.

d. Determine the equilibrium price and quantity of wine in the domestic market with the quota of 5 units.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9292182

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