D - 15 - P S = P - 3 D Question 1 2 pts a, Assume initially that Iceland does not open to trade. What are the autarky equilibrium price and quantity? P - Q- D Question 2 3 pts b. Suppose Iceland decides to engage in trade, Determine the quantity demanded, quantity supplied, and import, given the world price of $4 per bushel of wheat. Price = $ Quantity supplied (domestically); bushelImports = bushels D Question 3 5 pts Suppose the Icelandic government applies an import quota that limits imports to 4 bushels. (1) Determine the quantity demanded, quantity supplied, and new domestic price with the quota. Hence, price under quota - $ Total Quantity demanded: bushels Quantity supplied: bushels domestically, from imports (2) Calculate the quota rent. Quota rent: $