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Qs=20P, Qd=200-20P
a) suppose the government impose a price floor of $8, what would be the equilibrium price and quantity? What is domestic consumer surplus? PS? DWL? Show in graph.
ignore a), suppose Pw=3
b) in the case of free international trade, how much corn is imported? What is the CS and PS? Show in graph.
c) suppose a $1 tariff is imposed on imported corn. What will the new equilibrium P and Q? CS? PS? DWL? Government tax revenue? Show in graph.
d) ignore c), suppose government impose an import quota such that equilibrium P=3.5. What is CS? PS? DWL? Show in graph.
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