The domestic demand function (D) of petrol in India is 1000 - 5P and Supply (S) function is 500 + 10P. The domestic demand (D) of petrol in Iran is 1200-20P and domestic supply (S) = 1500 + 15P. When India completely bans the import from Iran to encourage domestic production, what will be the price of petrol?
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Trade policy: tariffs, quotas and protection has come up 63 times in 6 exams since 2010.
This question is on Quotas, tariff-quota equivalence and non-tariff barriers, part of Trade policy: tariffs, quotas and protection in International Economics.
Quantity limits on trade and how they compare with tariffs.
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Question from the JNU SSS 2021 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.