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5. Government decides that it will not implement the excise tax, but will instead open the domestic bluetooth speaker market to international suppliers. If the world price for bluetooth speakers is R250, what is the equilibrium quantity traded in the domestic market? [1] 6. How much of the total quantity traded in the domestic market is produced in South Africa? [1] 7. After seeing the reduced output of domestic producers who were being out-competed by foreign firms, government decides that it wants to support domestic bluetooth speaker manufacturers and introduces a R100 tariff on imported speakers. What is the new equilibrium price and quantity in the market with the excise tax in effect? [2] 8. How much revenue is government generating from the tariffs?
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