The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy is open to trade, and the world price of a car is $6,000, how many cars will be imported?

Question

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In an open economy, the price of a car is the world price. At a price of $6,000, the quantity demanded domestically is 14,000, and the quantity supplied domestically is 8,000, implying that the country will import 6,000 cars.

The Demand for Cars in a Certain Country Is Given