The diagram depicts a small country in the global wheat market. The global price (Pf) of...

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The diagram depicts a small country in the global wheat market. The global price (Pf) of wheat is $3 per bushel. A.) What are the "free trade" production, consumption and trade levels for this country? For political reasons, the government decides that domestic wheat farmers must receive a total of $5 per bushel (Pt) for the wheat they grow. B.) What are the new production, consumption and trade levels for this country? C.) Calculate the change in producer and consumer surplus and government revenue. D.) What is the "net welfare" effect of the tariff on the country? Now assume the country is a large country and that imposing the $2 per bushel tariff results in the world price falling to $2? See the green lines below. E.) What are the new production, consumption and trade levels? Why are they different? F.) Without doing all the calculations describe is likely to happen to the net welfare impact of the tariff on this country and why? Price 6 5 16 S 2 P' 8 2 1 'D -Pf 8 12 16 18 Quantity The diagram depicts a small country in the global wheat market. The global price (Pf) of wheat is $3 per bushel. A.) What are the "free trade" production, consumption and trade levels for this country? For political reasons, the government decides that domestic wheat farmers must receive a total of $5 per bushel (Pt) for the wheat they grow. B.) What are the new production, consumption and trade levels for this country? C.) Calculate the change in producer and consumer surplus and government revenue. D.) What is the "net welfare" effect of the tariff on the country? Now assume the country is a large country and that imposing the $2 per bushel tariff results in the world price falling to $2? See the green lines below. E.) What are the new production, consumption and trade levels? Why are they different? F.) Without doing all the calculations describe is likely to happen to the net welfare impact of the tariff on this country and why? Price 6 5 16 S 2 P' 8 2 1 'D -Pf 8 12 16 18 Quantity