malaysia Is A Small Nation And Imports Electrical And Products At Rm20 Get Essay Help

Malaysia is a small nation and imports electrical and products at RM20 per unit. The domestic demand and supply curves are as follows:
Demand: P = 58 – 0.05Q
Supply: P = 0.05Q – 3
i. Determine the import demand function.
ii. Draw a demand and supply curve, and indicate the world price diagram.
iii. Under autarky, what are the equilibrium price and quality consumed? Indicate these points in the diagram.
iv. Under free trade, how much is produced domestically, and how much is imported ?
v. Assume that the Malaysian government is now imposing an import quota 200 units. What is the new price of electrical and electronic products and quantity consumed as well as domestic production?
vi. Who wins and who loses after the imposition of import quota? Calculate the consumers, domestic producers, importers and overall welfare of Malaysia.