Suppose the following domestic demand and supply schedule for Thailand's wine industry: $\begin{array} { c c c }
\hline \begin{array} { c }
\text { Price } \
( \$ )
\end{array} & \begin{array} { c }
\text { Quantity } \
\text { Demanded } \
\text { (in thousands) }
\end{array} & \begin{array} { c }
\text { Quantity } \
\text { Supplied } \
\text { (in thousands) }
\end{array} \
\hline 23 & 390 & 330 \
24 & 380 & 340 \
25 & 370 & 350 \
26 & 360 & 360 \
27 & 350 & 370 \
28 & 340 & 380 \
29 & 330 & 390 \
\hline
\end{array}$ a) In the absence of free trade, what is the equilibrium price and quantity traded domestically for Thailand's wine industry?
b) Suppose the international price for a bottle of wine is $27. Will Thailand export or import wine? How many units?
c) Now suppose the Thai government places a $2 tariff on imported wine. How many units will Thailand import?

Question

Suppose the following domestic demand and supply schedule for Thailand's wine industry: $\begin{array} { c c c } 
\hline \begin{array} { c } 
\text { Price } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Demanded } \
\text { (in thousands) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Supplied } \
\text { (in thousands) }
\end{array} \
\hline 23 & 390 & 330 \
24 & 380 & 340 \
25 & 370 & 350 \
26 & 360 & 360 \
27 & 350 & 370 \
28 & 340 & 380 \
29 & 330 & 390 \
\hline
\end{array}$ a) In the absence of free trade, what is the equilibrium price and quantity traded domestically for Thailand's wine industry?
b) Suppose the international price for a bottle of wine is $27. Will Thailand export or import wine? How many units?
c) Now suppose the Thai government places a $2 tariff on imported wine. How many units will Thailand import?

Quizplus · Accepted Answer

The Answer of Suppose the following domestic demand and supply schedule for Thailand's wine industry: $\begin{array} { c c c } 
\hline \begin{array} { c } 
\text { Price } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Demanded } \
\text { (in thousands) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Supplied } \
\text { (in thousands) }
\end{array} \
\hline 23 & 390 & 330 \
24 & 380 & 340 \
25 & 370 & 350 \
26 & 360 & 360 \
27 & 350 & 370 \
28 & 340 & 380 \
29 & 330 & 390 \
\hline
\end{array}$ a) In the absence of free trade, what is the equilibrium price and quantity traded domestically for Thailand's wine industry?
b) Suppose the international price for a bottle of wine is $27. Will Thailand export or import wine? How many units?
c) Now suppose the Thai government places a $2 tariff on imported wine. How many units will Thailand import?

Suppose the Following Domestic Demand and Supply Schedule for Thailand's