Loss would domestic farmers incur due to the export ban

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The farmers in country A harvest and sell 150 bushels of wheat at the price of $80 per bushel. Of the total production 30 bushels are exported. If the government bans all exports of wheat, the domestic price of wheat would drop to $60. But the production and sales would also drop to 120 bushels. So, how much loss would the domestic farmers incur due to the export ban? Show your result in a graph.

Reference no: EM13837357

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