Question

Kawmin is a small country that produces and
consumes jelly beans. The world price of jelly
beans is $1 per bag, and Kawmin’s domestic
demand and supply for jelly beans are governed
by the following equations:
Demand: QD 5 8 – P
Supply: QS 5 P,
where P is in dollars per bag and Q is in bags of
jelly beans.
a. Draw a well-

b. Kawmin then opens the market to trade.
Draw another graph to describe the
new situation in the jelly bean market.
Calculate the equilibrium price, quantities
of consumption and production, imports,
consumer surplus, producer surplus, and
total surplus.
c. After a while, the Czar of Kawmin responds
to the pleas of jelly bean producers by
placing a $1 per bag tariff on jelly bean
imports. On a graph, show the effects of
this tariff. Calculate the equilibrium price,
quantities of consumption and production,
imports, consumer surplus, producer surplus,
government revenue, and total surplus.
d. What are the gains from opening up
trade? What are the deadweight losses
from restricting trade with the tariff? Give
numerical answers.

Answer 1

Too many questions and the questions are incomplete.

Please restate A.