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 the tables below. Pepperland Price Qd Qs 60 230 180 70 200 200 80 170 220 90 150 240 100 140 250 Land of Submarines Price Qd Qs 60 430 310 70 420 330 80 410 360 90 400 400 100 390 440a) What would be the equilibrium price and quantity in each country in a world without trade? Pepperland: Price = $ , Quantity = Land of Submarines: Price = $ , Quantity = b) What would be the equilibrium price and quantity in each country if trade is allowed to occur? Price = $ , Quantity = c) How much steel will Pepperland export without a quota? units If the Land of Submarines imposes an anti-dumping import quota of 30, will it benefit or injure consumers and producers in each country. Land of Submarines: It will consumers and producers. Pepperland: It will consumers and producers. e) Will your answer to part d change if The Land of Submarines increases the import quota to 70? (Yes, No, or No effect)
