The accompanying table indicates the Canadian domestic demand schedule and domestic supply schedule for commercial jet airplanes. Suppose that the world price of a commercial jet airplane is $100 million.

a. In autarky, how many commercial jet airplanes does Canada produce, and at what price are they bought and sold?

b. With trade, what will the price for commercial jet airplanes be? Will Canada import or export airplanes? How many?

Transcribed Image Text:

Price of jet (millions) Quantity of jets Quantity of jets supplied demanded 1 000 $120 100 110 150 900 100 200 800 90 250 700 80 300 600 350 500 70 400 60 400 50 450 300 40 500 200