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    Pricing with Import Quota

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    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

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    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 ...

    Solution Summary

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