If the world price is 10 euros what is the free trade level of imports?

Suppose that the domestic demand and supply for graham crackers in the small open economy of France Show more Suppose that the domestic demand and supply for graham crackers in the small open economy of France are given by: Demand : Q = 200 4P Supply : Q = 40 + 2P where Q denotes quantity and P denotes price in euros. a If the world price is 10 euros what is the free trade level of imports? b Suppose that France imposes a quota limiting imports of graham crackers to 40 units. How much will the domestic price be? c What will be the welfare eects on France of a quota limiting imports to 40 units? Show less

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