(Solved) : Consider Market Tim Tams Australia Small Country World Price Tim Tams 5 Quantity Demanded Q32966909 . . . .

Consider the market of Tim Tams in Australia (a small country).The world price of Tim Tams is $5. The quantity demanded inAustralia is qd = 40 − 2p The domestic supply is qs = 2p where p isthe price of Tim Tams (a) i) Calculate the Australian theequilibrium price, quantity, consumer surplus and producer surplusunder autarky (no trade). (1 mark) ii) Suppose that after Brexit,Australia removes a ban on international trade of Tim Tams made inthe UK (the rest of the world). With the aid of a well-labelleddiagram, calculate the new equilibrium price, the quantity consumedand the quantity supplied by