Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 2

Using the data on supply and demand in problem 1,suppose the EU imposed a quota on imports of beef equal to 40 million pounds of beef per month.
a. What would be the price of beef in the EU?
b. How much beef would EU producers supply?
c. How much beef would EU consumers demand?
Problem 1
The following table provides hypothetical data about the supply and demand for beef in the European Union. The prices are in euros,and quantities are millions of pounds of beef per month. (You may wish to draw the supply and demand curves to help you visualize what is happening.)
a. In the absence of international trade,what is the equilibrium price and quantity of beef?
b. If trade opens up,and the world price of beef is (and remains)2 euros per pound of beef,how much beef will EU producers supply? How much beef will EU consumers demand? How much beef will be imported?
c. Within the EU,who gains and who loses when trade opens up?