Answer to Question #218337 in Microeconomics for Miny

Question

Belgium is a small country which produces and consumes
gooseberries. The quantity demand of gooseberries is Qd= 120-4P, and
quantity supply is Qs= 2P in Belgium. If world price of gooseberries is
Rs 15 then Belgium will export or import gooseberries and by how
much?

Answer 1

Given

 Qd= 120-4P

 Qs= 2P

P=Rs 15

$Qd= 120-4P\\ Qd= 120-4(15)=60$

$Qs= 2P\\ Qs= 2(15)=30$

since the quantity demanded is more than the quantity supplied. Belgium will import gooseberries to meet the deficit.

The quantity imported will be:

$60-30=30$

Therefore to meet the demand, Belgium is required to import 30 goose berries.