For this problem suppose that domestic has a market demand curve for crude oil of P=100-Q and a market supply curve of P=3xQ. Domestic is considering an import tariff of $30. If domestics import demand curve takes the form P=A-BxQ what is the value of A and B?

14. Canada has a competitive domestic market for steel and currently bars imports. The domestic market inverse demand curve for steel is p = 300 - 9 and the domestic inverse supply curve is p = 29. a. Find the domestic market equilibrium price and quantity assuming no imports or exports of steel are allowed. Calculate the resulting consumer surplus, producer surplus, and total surplus in the domestic market. Show clearly on a diagram. (5 marks) b. Now assume Canada decides to allow imports of steel and that the import inverse supply curve is p = q (i.e., this function describes the quantity of steel that would be imported as a function of the price in the domestic (i.e., Canadian market). Find the new equilibrium price, the amount of steel sold by domestic firms, and the amount of steel imported. Also calculate the resulting domestic producer surplus, domestic consumer surplus, and domestic total surplus. Show clearly on a diagram. (5 marks) c. Does barring imports of steel into Canada create a deadweight loss? Explain with a diagrant. (4 marks)

2) "As domestic car prices have increased, consumers have found foreign cars to be a better bargain. Consequently, domestic car sales have fallen and foreign car sales have risen." Based on this information alone, there has been a A) shift in the demand curves for both domestic and foreign cars. B) shift in the supply curves for both domestic and foreign cars. C) movement along the demand curves for both domestic and foreign cars. D) movement along the demand curve for domestic cars and a shift of the demand curve for foreign cars. E) shift of the demand curve for domestic cars and a movement along the demand curve for foreign cars.

"As domestic car prices have increased, consumers have found foreign cars to be a better bargain. Consequently, domestic car sales have fallen and foreign car sales have risen." Based on this information alone, there has been a OA. shift in the demand curves for both domestic and foreign cars. OB. shift of the demand curve for domestic cars and a movement along the demand curve for foreign cars. OC. movement along the demand curves for both domestic and foreign cars. OD movement along the demand curve for domestic cars and a shift of the demand curve for foreign cars. OE. shift in the supply curves for both domestic and foreign cars.