How the export subsidy affect the domestic price of steel

Reference no: EM13233435

Consider a small country that exports steel. Suppose that a "pro-trade" government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export subsidy affect the domestic price of steel, the quantity of steel produced, the quantity of steel consumed, and the quantity of steel exported? How does it affect consumer surplus, producer surplus, government revenue, and total surplus? Is it a good policy from the standpoint of economic efficiency?

Reference no: EM13233435

Questions Cloud

How do the implementaion issues differ : What factors must be considered when implementing an innovative technology internally? What factors must be considered when implementing an externally acquired innovative techology? How do the implementaion issues differ? How are they the same?

Explain xenon has eight valence electrons : Considering that Xenon has eight valence electrons, how can something like XeF4 exist? Explain your answer by illustrating what occurs.

Solve for the deadweight loss as a function of t : Suppose that a tax of T is placed on buyers, so the new demand equation is QD = 300 - (P + T). Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold

Hybridization plays role in the geometry of the molecule : Explain how and why Carbon can experience, sp, sp2, and sp3 via hybridization and what role this plays in the geometry of the molecule.

How the export subsidy affect the domestic price of steel : Consider a small country that exports steel. Suppose that a "pro-trade" government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export subsidy affect the domestic price of steel

Find the magnitude of the electric field : In the figure below, two parallel-plate capacitors A and B are connected in parallel across a 600 V battery. Each plate has area 70.0 cm2; the plate separations are 3.30mm, Find the magnitude of the electric field within the dielectric of capacitor..

Explain hydroxide solution required to completely neutralize : Calculate the volume of 0.125 M radium hydroxide solution required to completely neutralize 10.00 mL of 6.32 M phosphoric acid (3 acidic hydrogens)

Dissolution of the ottoman empire : Please explain to me the dissolution of the Ottoman empire. How and when did it happen and what were some consequences?

Motives and actions of reformers in the german states : Compare and contrast the motives and actions of reformers in the German states and the reformers in England in bringing about religious change during the Reformation.

User Account

All Pages