The demand and supply for automobiles in a certain country is given in the graph below. a.

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Question:

The demand and supply for automobiles in a certain country is given in the graph below. a. Assume that the economy is open to trade, and the world price of automobiles is $10,000. Using the graph below, find the domestic quantity demanded, the domestic quantity supplied, and the quantity of imports or exports.

Instructions: Indicate the domestic quantity demanded and the domestic quantity supplied with the tools "Qd" and "Qs" by clicking on the appropriate intercept on the graph.

With the economy open to trade, the country (Click to select) cars per year. b. Now assume that the government imposes a quota on automobile imports of 2,000 cars per year. In the figure below, graph domestic supply plus the quota, indicate the new quantity demanded by domestic consumers and the new quantity supplied by domestic producers, and determine what happens to the quantity of imports or exports.

Instructions: Graph domestic supply plus the quota using the tool "Quota".

This new line should extend between the prices of $4,000 and $18,000. Then indicate the the new quantity demanded by domestic consumers and the new quantity supplied by domestic producers with the tools "Qd" and "Qs." .

With the quota in place, the country (Click to select) cars per year.

What price do domestic consumers pay for cars with the quota in place? $ per car.

c. The imposition of the quota in the automobile market is favored by: multiple choice 3 domestic consumers, but opposed by domestic producers. both domestic producers and anyone with an import license, but opposed by domestic consumers. the revenue receiving government, but opposed by both domestic producers and domestic consumers. domestic producers, but opposed by anyone with an import license.