Purchase Solution

Pricing with Import Quota

Not what you're looking for?

Ask Custom Question

With country A's demand and supply for a product being Qd= 60,000 - 400 P and
Q SD =20,000 + 500 P and country B's supply being Q SF = 20,000 + 100 P what would the new price be if country A has an import quota of 13,000? Please show me the steps to reach the new price of either $15, 20, 30, 40, or 45.
SD = Supply Domestic and SF = Supply Foreign

Purchase this Solution
Solution Summary

This solution calculates the price of a product for a company when there is an import quota.

Solution Preview

See Word attachment.

The demand of product in country A is QD = 60,000 - 400P
The domestic supply in country A is QS-Domestic = 20,000 + 500P
The foreign supply ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • tariff and quota

    The local businesses or industries benefit from tariff or quota as such import barriers protect these businesses or industries from foreign competition.

  • Net Welfare Loss From an Import Quota

    How a country determines which goods it should export, and the net welfare loss arising from an import quota. Illustrated with a diagram.

  • tariffs and import quotas

    Show that there is only one price consistent with Americans being willing to import exactly Q0 birdcages per year, and explain why the price will rise to that level. c. Who wins and who loses as a result of the quota?

  • Tariffs, Quotas and Trade

    Answer: Revenue effect of import quota differs from the revenue impact of an import tariff.

  • Import quota elimination

    How the elimination of an import quota affect prices and quantities sold.

  • Quotas vs tariff dilemma

    When compared with tariffs, under quotas the same restriction produces higher price rise in the home country. There is a theory of tariff-quota equivalence which assumes perfect competition.

  • What is the effect of an import quota on the supply and price of domestic sugar?

    Suppose an import quota of 5,000 is imposed in the domestic market. What will be the new market price of sugar? How many units of sugar will domestic produces supply after the quota is imposed?

  • Impose a quota

    Your first instinct is to call the trade representative of your country to lobby against the import quota. Is following through with your first instinct necessarily the best decision? Explain. My answer is it depends. Let me explain both sides.

  • exporting hybrid/electric vehicles

    Import cars within quota shall be declared under Chapter 98 of the Tariff with import duty rate of 24.6%, whereas those without quota shall be declared under Chapter 87 of the Tariff with import duty rate of 60%.

View More Related Solutions