The U.S. demand and supply for food are given by Du-10-P and Su = 4P The rest of the world (ROW) demand and supply for food are given by D, = 10 -P, and S, = Pr. Calculate %3D market prices and levels of production, consumption, and exports (imports) for both regions for the following U.S. regimes. a. Autarky. (You don't need to calculate numbers for the rest of the world on this one.) b. Perfect competition. c. The U.S. adopts a direct payment program with the target price equal to 3; d. The United States adopts a price support program with the support level equal to 3. e. Illustrate your analysis with three-panel diagrams. This table should help in summarizing your answers.

The U.S. demand and supply for food are given by Du-10-P and Su = 4P The rest of the world (ROW) demand and supply for food are given by D, = 10 -P, and S, = Pr. Calculate %3D market prices and levels of production, consumption, and exports (imports) for both regions for the following U.S. regimes. a. Autarky. (You don't need to calculate numbers for the rest of the world on this one.) b. Perfect competition. c. The U.S. adopts a direct payment program with the target price equal to 3; d. The United States adopts a price support program with the support level equal to 3. e. Illustrate your analysis with three-panel diagrams. This table should help in summarizing your answers.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 8PA

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