Suppose the supply of wine by domestic firms is Q^SD = 5 + P and the supply of wine by foreign firms is Q^SF = 5 + P.The domestic demand for wine is given by Q^d = 40 - P.
a.In the absence of a quota,what is the total supply of wine?
b.What are the equilibrium price and quantity of wine?
c.Suppose a quota of 5 units is imposed.What is the total supply of wine?
d.Determine the equilibrium price and quantity of wine in the domestic market under the quota of 5 units.
e.What is the loss in consumer surplus caused by the quota?

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The Answer of Suppose the supply of wine by domestic firms is Q^SD = 5 + P and the supply of wine by foreign firms is Q^SF = 5 + P.The domestic demand for wine is given by Q^d = 40 - P. a.In the absence of a quota,what is the total supply of wine? b.What are the equilibrium price and quantity of wine? c.Suppose a quota of 5 units is imposed.What is the total supply of wine? d.Determine the equilibrium price and quantity of wine in the domestic market under the quota of 5 units. e.What is the loss in consumer surplus caused by the quota?

Suppose the Supply of Wine by Domestic Firms Is QSD

Suppose the Supply of Wine by Domestic Firms Is Q^SD