The domestic demand and supply for sugar are Q^d = 40,000 − 200P and Q^SD = 10,000 + 300P.The foreign supply is Q^SF = 20,000 + 100P.Suppose an import quota of 5,000 is imposed in the domestic market.How many units of sugar will domestic producers supply after the quota is imposed?

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Before the quota, the domestic supply is Q^d = 40,000 − 200P, and the foreign supply is Q^SF = 20,000 + 100P. To find the equilibrium, we set domestic supply equal to domestic demand plus the quota: 40,000 - 200P = 10,000 + 300P + 5,000 35,000 = 500P P = 70 Plug P into the domestic supply equation to find the domestic quantity supplied after the quota: Q^d = 40,000 − 200(70) = 25,000 Therefore, the answer is B, 25,000.

The Domestic Demand and Supply for Sugar Are Qd =

The Domestic Demand and Supply for Sugar Are Q^d =