a. Compute the equilibrium price (P) and quantities (Q) in each country without trade.

b. Now assume that free trade occurs. The free-trade price goes to 56.36 Baht. Who exports and imports

cameras and in what quantities?

56. You have just been put in charge of trade policy for Malawi. Coffee is a recent crop that is growing well and

the Malawian export market is developing. As such, Malawi coffee is an infant industry. Malawi coffee

producers come to you and ask for tariff protection from cheap Tanzanian coffee. What sorts of policies

will you enact? Explain.
500 20 • Problems

57. The country of Pepperland exports steel to the Land of Submarines. Information for the quantity

demanded (Qd) and quantity supplied (Qs) in each country, in a world without trade, are given in Table

20.6 and Table 20.7.

Price ($) Qd

Qs

60

70

80

90

230 180

200 200

170 220

150 240

100

140 250

TABLE 20.6

Pepperland

Price ($) Qd

Qs

60

70

80

90

430 310

420 330

410 360

400 400
{"creationdate": "2022-12-07T14:15:44-06:00", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "batch_upload": true, "creator": "PDFMiner", "file_type": ".pdf", "file_name": "Microeconomics3e.pdf", "moddate": "2022-12-07T14:23:05-06:00", "uploaded_via": "batch_uploader", "title": "Principles of Microeconomics 3e", "upload_timestamp": "2026-02-07T15:24:38.309401", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "total_pages": 597, "file_size_mb": 26.99, "producer": "Prince 14.2 (www.princexml.com)"}