The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100 and this economy is open to trade.If a quota of 50 units is placed on DVD player imports,the quantity of DVD players produced domestically will change from __________ with no quota to __________ with the quota.

Question

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Without the quota, at the world price of $100, domestic supply is 180 units (S = 100 + 0.8*100). With a quota of 50 units, total supply is 180 + 50 = 230 units. At this quantity, the domestic price adjusts to clear the market, leading to a new domestic production of 220 units (D = 300 - 0.2*P, solve for P when D = 230).

The Demand for DVD Players in a Country Is Given