The domestic demand for portable radios is given by

Demand: Q = 5,000 – 100P

where price P is measured in dollars and quantity Q is measured in thousands of radios per year. The domestic supply curve for radios is given by

Supply: Q = 150P

a. What is the domestic equilibrium in the portable radio market?

b. Suppose portable radios can be imported at a world price of $10 per radio. If trade were unencumbered, what would the new market equilibrium be? How many portable radios would be produced domestically? How many portable radios would be imported?

c. If domestic portable radio producers succeeded in getting a $5 tariff implemented, how would this change the market equilibrium? How much would be collected in tariff revenues? How much consumer surplus would be transferred to domestic producers? What would the deadweight loss from the tariff be?

d. Graph your results.