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The equation for the demand curve for writing paper in Belgium is Qd = 350 - ( P /2) [or P = 700 - 2 Qd ]
The equation for the supply curve for writing paper in Belgium is Qs = - 200 + 5P [or P = 40 + ( Qs / 5)]
a. What are the equilibrium price and quantity if there is no international trade?
b. What are the equilibrium quantities for Belgium if the nation can trade freely with the rest of the world at a price of 120?
c. What is the effect of the shift from no trade to free trade on Belgian consumer surplus? On Belgian producer surplus? What is the net national gain or loss for Belgium?
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