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the nation of Enuiya is "small", unable to affect world prices. Its imports peanuts at the price of $10 per bag. The demand curve is: D = 800 -20P...

the nation of Enuiya is "small", unable to affect world prices. Its imports peanuts at the price of $10 per bag. The demand curve is: D = 800 -20P
The supply curve is: S = 100 + 10P
Determine the free trade equilibrium. Then calculate and graph the following effects of an import quota that limits imports to 100 bags.
a. the increase in domestic price
b. The quota rents
c. The consumption distortion loss
d. The production loss

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Solution of 552840_ECO.xls

Question:the nation of Enuiya is "small", unable to affect world prices. Its imports peanuts at the price of $10 per bag. The demand curve is: D = 800 -20P
The supply curve is: S = 100 +...

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