the demand for jeans in a country is given by Qd = 100-0.6P, where P is the pric

Question

the demand for jeans in a country is given by Qd = 100-0.6P, where P is the price of a pair of jeans. Supply by domestic producers is given by Qs = 20+0.4P. The world price of jeans equals $30.

In equilibrium, when the economy is closed to trade, what is domestic jeans production?

In equilibrium, when the economy is open to trade, what is domestic jeans production?

How the heck do I figure this out

Thanks

Explanation / Answer

qd=100-0.6p qs=20+0.4p at equilibrium qd=qs 100-0.6p=20+0.4p=>100-20=p or p=80 so quantity produced when closed to trade=100-0.6*80=100-48=52 when open to trade domestic jeans production is qs at p=30 20+0.4*30=20+12=$32

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