The nation of Bermuda is “small” and assumed to be unable to affect world prices. It imports strawberries at the price of 10 dollars per box. The Domestic Supply and Domestic Demand curves for boxes are: S = 60 + 20P D = 1160 − 15P (a) if the import quota is 400 boxes then what is new equilibrium price.

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Chapter9: Application: International Trade
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The nation of Bermuda is “small” and assumed to be unable to affect world prices. It imports
strawberries at the price of 10 dollars per box. The Domestic Supply and Domestic Demand curves
for boxes are:
S = 60 + 20P
D = 1160 − 15P
(a) if the import quota is 400 boxes then what is new equilibrium price.

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