The figure shows a country’s domestic supply and demand curves for a good, as well as the world price, Pw, for the good that it faces, as a small country, on the world market. Initially, the country is exporting X1 units of that good at that price. Suppose that producers in this industry lobby policy makers to provide them with some sort of assistance to help them export even more. Policy makers are considering an export subsidy. What area represents the cost of this subsidy to the government (taxpayers)? Group of answer choices b+c+d a+b+c+d c+d a+b+c

Q: Demand: P=420-60Qd Supply: P=2+20QS a. With free trade and an international price of $60 per barrel,…

A: Demand : P = 420 - 60Q 60Q = (420-P) Q = (420-P)/60   Supply : P = 2 + 20Q 20Q = (P-2)  Q = (P-2)/20…

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A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session.…

Q: Export subsidies result in a welfare loss to the home country due to the protective and consumption…

A: An export subsidy is a payment to the exporting firm by the government of the exporting country to…

Q: What benefits do export quotas provide? In your opinion, what does the U.S produce that would…

A: Export quotas are restrictions placed by the government on the volume of a specific commodity or…

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A: Equilibrium is achieved at the output level where Qs equals Qd.

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Q: The following graph shows the domestic demand for and supply of oranges in Zambia. The world price…

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A: Consumer surplus is the area below demand curve and above supply curve. Producer surplus is the area…

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A: The following problem in relation to imposition of tariff has been explained as follows:

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A: Since you have posted multiple sub parts , we will provide solutions to the first three sub parts…