What are equilibrium price and quantity-consumer surplus

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Assume the nation of Australia is "small" and thus unable to influence world price. Its demand and supply schedules for TV sets are shown in Table 4.13.Using graph paper, plot the demand and supply schedules on the same graph. a. Determine Australia's market equilibrium for TV sets. (1) What are the equilibrium price and quantity? (2) Calculate the value of Australian consumer surplus and producer surplus. b. Under free-trade conditions, suppose Australia imports TV sets at a price of$100 each. Determine the free-trade equilibrium, and illustrate graphically. (1) How many TV sets will be produced, consumed, and imported? (2) Calculate the dollar value of Australian consumer surplus and producer surplus. Price of TV's Quantity Demanded Quantity Supplied $500 0 50 $400 10 40 $300 20 30 $200 30 20 $100 40 10 0 50 0.

Reference no: EM13886690

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