Determine equilibrium price and quantity under free trade

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Question: Consider a competitive market served by many domestic and foreign firms. The domestic demand for these firms' product is Qd = 600 - 2.5P. The supply function of the domestic firms is QSD = 200 + 1.5P, while that of the foreign firms is QSF = 200.

Instructions: Round your answers for equilibrium price to the nearest penny (two decimal places). Round your answers for equilibrium quantity to one decimal place.

Determine the equilibrium price and quantity under free trade.

Reference no: EM131131594

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