Question: The following table provides hypothetical data about the supply and demand for beef in the European Union. The prices are in euros, and quantities are

The following table provides hypothetical data about the supply and demand for beef in the European Union. The prices are in euros, and quantities are millions of pounds of beef per month. (You may wish to draw the supply and demand curves to help you visualize what is happening.)

a. In the absence of international trade, what is the equilibrium price and quantity of beef?
b. If trade opens up, and the world price of beef is (and remains) 2 euros per pound of beef, how much beef will EU producers supply? How much beef will EU consumers demand? How much beef will be imported?
c. Within the EU, who gains and who loses when trade opensup?

Price Quantity Supplied Quantity Demanded 20 40 60 80 100 120 160 140 120 100 80 60 40 10 12

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