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4 19 0 25 15 complete brum Market for Tennis Shoes The diagram on the right shows the market for tennis shoes in the United States. If the United States does not made with other countries, what are the price and quantity of tennis shoes? The equilibrium prices and the equilibrium quality is million pairs of shoes Suppose the United States opens to free trade with other countries and the world is $40 per often shoes What are the quantity demanded supplied by domestic producers, and the quantity of importa? by The quantity demanded is million pairs of shoes, the quantity supplied by domestic producers is million pas of shoes and the importis on pairs of shoes Domestic producers complain and convince the government to impose a Stari per part of shoes What are the girl pic demanded quant supplied by domestic producers and the quantity of import? The equilibrium price is the demanded is in pairs of shoes the quantity supplied by domestic producers is milions of shoes and the quantity of imports is million pairs of shoes

Answer 1

Ans)(i) Equilibrium price = 55

(ii) Equilibrium quantity = 20

When there is no trade, the equilibrium occurs where the demand curve intersects the supply curve.

(iii) 40

(iv) 10

(v) 30 millions

We can see that at world price of $40, the quantity demanded is 40 millions and quantity supplied is 10 millions.

Imports = quantity demanded - quantity supplied

Imports = 40 - 10 => 30 millions.

(vi)45

(vii) 35

(viii) 15

(ix)   20

When tariff of $5 is imposed, the world price increases to $45 and we can see in the diagram that at this price, quantity demanded is 35 millions , quantity supplied is 15 millions .

Imports = 35 - 15 => 20 millions