Show who gains and who loses

Reference no: EM131345595

The United States not only subsidizes producers of cotton (in several ways, including a water subsidy and a price support) but pays $1.7 billion to U.S. manufacturers to buy American cotton. It has paid $100 million each to Allenberg Cotton and Dunavant Enterprises and large amounts to more than 300 other firms (Elizabeth Becker, "U.S. Subsidizes Companies to Buy Subsidized Cotton," New York Times, November 4, 2003, C1, C2). Assume for simplicity that specific subsidies (dollars per unit) are used. Use a diagram to show how applying both subsidies changes the equilibrium from the no-subsidy case. Show who gains and who loses.

Reference no: EM131345595

Questions Cloud

Determine the numbers of lamps and luminaries : ETM 430- Everything remains the same as that of Question 1 except that the luminaries are suspended from 25' ceiling. Please determine the numbers of lamps and luminaries and develop the light layout.

How the large tariff would affect the welfare of consumers : Now use your diagram to show how the large tariff would affect the welfare of consumers and producers and government revenues.

Which coordinates represent a good central location : Houma will be visited five times a year - Which coordinates represent a good central location for this office? What other factors might influence the office location decision? Where would you place this office? Explain.

Radioisotope thermoelectric generator : Pu-238 (T1/2 = 87.7 years) is to be used as a heat source in a radioisotope thermoelectric generator (RTG) for a spacecraft. a. Write the decay equation if Pu-238 emits an alpha particle.

Show who gains and who loses : Assume for simplicity that specific subsidies (dollars per unit) are used. Use a diagram to show how applying both subsidies changes the equilibrium from the no-subsidy case. Show who gains and who loses.

How does one manage new product-service ideas : Attacking a leader is always difficult. Some strategists recommend attacking a leader "head-on" by targeting its strengths. Other strategists disagree and recommend flanking and attempting to avoid the leader's strengths.Take a position: The best ..

Review the mission statement above that depicts the purpose : Review the mission statement above that depicts the purpose of the overall organization. Write 3 measurable goals that would aid the hospital in achieving its mission.

Why does the tilt of the earth cause the seasons : Why does the tilt of the Earth cause the seasons? It seems to me like the distance from the Earth to the Sun should cause the seasons.

Evaluate the increase in new york consumer surplus : Suppose the market for wine in New York is perfectly competitive both before and after the Supreme Court decision. Use the analysis in Section 9.7 to evaluate the effect of the Court's decision on the price of wine in New York.

User Account

All Pages