Estimating equilibrium price and quantity

Reference no: EM1374172

Suppose perfect competition. Yoland is a small nation that takes world value of corn as given. Its domestic supply and demand for corn is given by the following:

Demand: D = 36-3P
Supply: S = 3p-9

a. Suppose initially that Yoland does not open to trade. Determine the autarky equilibrium price and quantity?

b. Assume Yoland decides to engage in trade. Compute the quantity demanded, the quantity supplied, and import given the world price of $6 per bushel of corn.

c. If the government of Yoland imposes a tariff in the amount of $1 (i.e., t=$1), what is the new domestic price? What is the amount imported?

Reference no: EM1374172

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