Price of Steel (Dollars per ton) 100 Demand 90 80 70 60 50 40 30 20 10 Supply 0 0 100 200 300 400 500 600 700 Quantity of Steel (Tons) 800 900 1000 Triangle P 2 Polygon P 1 Because this country exports steel, the world price is represented by Suppose that a "pro-trade" government decides to subsidize the export of steel by paying $10 for each ton sold abroad. With this export subsidy, the price paid by domestic consumers is $ ton. The quantity of steel consumed by domestic consumers per ton, and the price received by domestic producers is $ per , the quantity of steel produced by domestic producers , and the quantity of steel exported True or False: With the export subsidy, this country will start importing steel from abroad. True ○ False Under the export subsidy, consumer surplus is $ $ As a result, total surplus and producer surplus is $ Government revenue by
Price of Steel (Dollars per ton) 100 Demand 90 80 70 60 50 40 30 20 10 Supply 0 0 100 200 300 400 500 600 700 Quantity of Steel (Tons) 800 900 1000 Triangle P 2 Polygon P 1 Because this country exports steel, the world price is represented by Suppose that a "pro-trade" government decides to subsidize the export of steel by paying $10 for each ton sold abroad. With this export subsidy, the price paid by domestic consumers is $ ton. The quantity of steel consumed by domestic consumers per ton, and the price received by domestic producers is $ per , the quantity of steel produced by domestic producers , and the quantity of steel exported True or False: With the export subsidy, this country will start importing steel from abroad. True ○ False Under the export subsidy, consumer surplus is $ $ As a result, total surplus and producer surplus is $ Government revenue by
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Price of Steel (Dollars per ton)
100
Demand
90
80
70
60
50
40
30
20
10
Supply
0
0
100 200
300 400 500 600 700
Quantity of Steel (Tons)
800 900 1000
Triangle
P
2
Polygon
P
1
Because this country exports steel, the world price is represented by
Suppose that a "pro-trade" government decides to subsidize the export of steel by paying $10 for each ton sold abroad.
With this export subsidy, the price paid by domestic consumers is $
ton. The quantity of steel consumed by domestic consumers
per ton, and the price received by domestic producers is $
per
, the quantity of steel produced by domestic producers
, and the quantity of steel exported
True or False: With the export subsidy, this country will start importing steel from abroad.
True
○ False
Under the export subsidy, consumer surplus is $
$
As a result, total surplus
and producer surplus is $
Government revenue
by
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