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Q. Demand is given by: QD = 6000 - 50P, Domestic supply is: QS = 25P also Overseas producers can supply any quantity at a price of $40.
a. If overseas producers can sell in the domestic market Illustrate what is the equilibrium price? Illustrate what is the equilibrium quantity? Elucidate how much is sold by domestic also overseas producers, respectively?
b. Under domestic government force, overseas producers voluntarily agree to restrict their goods. Illustrate what will happen to the price also quantity? Illustrate what will happen to the amount to domestic producers supply? Illustrate what will happen to incomes of domestic also overseas producers?
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