91Ó°ÊÓ

Equilibrium refers to the point where,

Quantity demanded = Quantity supplied.

Thailand

Qd = 60$-$p

Qs = $-$5$+$1/4 P

Japan

Qd = 80-P

Qs = -10+1/2 P

(Qd = Quantity demanded

Qs= Quantity supplied)

At equilibrium

Qd=Qs

By taking case of Thailand

60-p = -5+1/4 P...(at equilibrium)

by solving equation

60+5 = 1/4p+p

65=5/4p

65*4=5P

P=52

by putting value P in equation

the equilibrium price of Thailand is 52.

the equilibrium quantity supply of Thailand is 8.

By taking case of Japan

80-P = -10+1/2 P ......(at equilibrium)

By solving equation

80+10= 1p+2p/2

90=3p/2

p=60

by putting value P in equation

The equilibrium price of japan is 60.

The equilibrium quantity supply of japan is 20.

The free-trade price goes to 56.36 Baht. Aa new price the Quantity supplied changed

For Thailand

we have an equation, for the quantity demanded

Qd= 60-P

by putting the new price value

=60-56.36

=3.64

The new Quantity demanded by the changed price is 3.6

we have an equation, for Quantity Supplied

Qs=-5+1/4P

by putting the value of P

we will get the new Quantity supplied for the changed price is 9.08.

For Japan

we have an equation, for the quantity demanded

Qd = 80-P

by putting the new price value

=80-56.36

=23.64

The new Quantity demanded by the changed price is 23.64

we have an equation, for Quantity Supplied

Qs = -10+1/2 P

by putting the value of P

we will get the new Quantity supplied for the changed price is 18.17.

Japan must import at least five cameras from Thailand (23.64-18.17=5.74).