The domestic supply and demand equations for good A are given by Qs=P – 40 and Qd=360 – 3p respectively. The world price of the good is $80.
a) At the current price, how much of good A is produced domestically and how much is consumed? How much of the good is the country importing from the world?
b) Graph the domestic supply and demand equations wight the world price. Show on the graph and calculate the producer surplus and consumer surplus.
The domestic supply and demand equations for good A are given by Qs=P – 40 and Qd=360 – 3prespectively. The world price of the good is $80.a) At the current price, how much of good A is produced…