Let us consider the case of Good X in Malaysia. The demand and supply functions for Good X in Malaysia are
Demand function:
Q
D=361−2P
Supply function:
Q
S=23+P
If the world price is 70, then is Malaysia an importer or exporter?
Find out the number of imports at
P
w=70 (Please give your answers in two decimal places. )
If the import quota was 80 units what will be the new price in the Malaysian market? (Please give your answers in two decimal places.)
How many Good X will be produced domestically after the quota has been implemented? (Please give your answers in two decimal places.)
How many Good X will be consumed by domestic consumers after the quota has been implemented? (Please give your answers in two decimal places.)
What will be the import after implementing an import quota of 80 units (Please give your answers in two decimal places.)
What is the percentage change in imports after the imposition of import quota? (Please give your answers in two decimal places, Multiply by 100 to convert into a percentage (if you get 0.40 then submit 40 in the answer)