Suppose a small country can import *food” at a world price of $200…

Question Suppose a small country can import *food” at a world price of $200… Suppose a small country can import *food” at a world price of $200 per ton. Inaddition, there is a positive production externality from domestic food productionWhtt praskes cemot aporopriate Asume that each unit of food produced yields amasirlentenalsocialbenefit of $50. Assume that at aprice of $200, domesticcuenitrdemanced eauals 200 milion tons and domestic ouantit/-supolied eauals100mlion tors Assume that for every $10 that price changes; quantity-supplieddenges by 3 milion tons,and guantty demanded changed by 2 million tons.allhististhe donstcequibrim price tht would have prevaied withouttede? 10.5poinlbi Afer hevins ree trade for several years.now supoose the small country’sgovennent inooseda $20 tarif on food imports. Calculate the following: /1×5-5 poinss/ite changein producer surplus,i the dtenge in corsumer surplssi the dhenge in the govemment budget andTwithedhanse in theexterralsocial benefit from productionv te creral impzct of tarif on domestic welfareckssne instesd of the terif that the county pays a production subsidyssubsdyis offered for al the units produced domestically: please note this isrot tre sime as export substylof $20 perton of food to domestic foodprodxes Catudate thefolowing 11x 424 points]ite dhangein producer surplius.itre change in corsumer surplus, Business Economics ECONOMICS EC239 Share QuestionEmailCopy link Comments (0)