17. (9 marks) Demand; P = 100 - 0.02 Q Supply; P = 40 + 0.01 Q Note that the equilibrium quantity is 2,000 and the price is 60. Each of parts a), b) and c) begins from that basic equilibrium. a) (3 mark) Assume open trade is allowed when the world price is $70. Find the resulting volume of exports, the gain from trade, and the consumers' surplus of domestic buyers. b) (3 marks) Assume a tax of $15 per unit is imposed. Find Qtax, CStax, and the tax dollars collected. c) (3 marks) Assume a price ceiling is imposed at $50. Assume the units are allocated to the highest willingness to pay buyers. Find CS, PS, and the deadweight loss caused by the ceiling. 18. (5 marks) You are running a monopoly firm which has two factories, where: TC(Q1) = 100 + 10Q1 + 0.1 (Q1)2 MC(Q1) = 10+ 0.2 Q1 TC(Q2) = 500 + 4Q2 + 0.05 (Q2)2 MC(Q2) = 4 + 0.1 Q2 Demand is P = 30 - 0.03 Q so, MR= 30 - 0.06 Q Find the 2-plant outcome (Price, Q1, Q2, Revenue, Profit)