The nation of "A" is "small" and unable to affect world prices. It imports corn at the price of $10 a bag. The demand and supply curves are given by the following
Q=400-10P and Q=50+5P.
Calculate the following:
a) The quantity of imports in the free trade equilibrium.
b) The increase in the domestic price after an import quota that limits imports to 50 bags. [Hint: How will your answer change if you had a tariff instead)
c) The quota rent.