Question 2: Suppose Qd= 100- 10P Qs = 10P a. Draw a graph using the supply and demand equation assuming no trade. Calculateequilibrium P, Q, consumer, producer and total surplus.   b. Draw another graph assuming that trade is allowed. Calculate quantity domesticallyconsumed, domestically produced, imports, consumer surplus, producer surplus assumingworld price =$3.   c. What happens to consumer surplus and producer surplus after trade? Does total surplusincrease or decrease after trade? Show your calculations.

Problem 1 Refreshing Refreshing Trade Basics - Prices Consider the market for computers in two countries, Uruguay and Indonesia. Let's assume both have perfectly competitive domestic computer markets. In autarky (no trade), the equilibrium price of computers in Uruguay is $500, and 10,000 computers are sold. In Indonesia (under autarky), the equilibrium price of computers is $400 and 8,000 computers are sold. (a) Draw supply and demand (partial equilibrium) graphs for each of these two countries indicating how many computers are sold and at what price when neither country trades (b) Now Uruguay and Indonesia open themselves up to global trade of com- puters. Let's assume the global price of computers is $450. Describe qual- itatively what happens to the price consumers pay for computers in each of these two countries (relative to the original autarky situation) as well as how much domestic producers sell now relative to the no trade world. Also state whether each country is an importer…

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How much the cost of a tariff pass through the prices paid in the United States depends on a. supply elasticities, number of complementary goods, and response of domestic producers b. demand elasticities, number of complementary goods, and response of domestic producers c. supply elasticities, number of complementary goods, and weather the goods are used as parts in integrated supply chains d. demand elasticities, number of substitute goods, and whether the goods are used as as parts in integrated supply chains

3. A fruit is traded in a competitive world market, and the world price is $10 per pound. The consumer quantity in this price is 100 million tonnes. One year later, overall fruit prices increase to $15 and total consumer level fall to 90 million tonnes. Under this circumstance, what is the price elasticity of demand fruit?

Lesson 6- Individual and Market Demand Question 6