Question: Help me answer part A and B that is from Econ-251 class. You need to find effect of export subsidy on consumer surplus, producer surplus,

Help me answer part A and B that is from Econ-251

Help me answer part A and B that is from Econ-251 class. You need to find effect of export subsidy on consumer surplus, producer surplus, and government revenue. Calculate overall net effect of the export subsidy on Home welfare. The figure or graph provides specific context. I think it shows current equilibrium price at $15 and quantity at 7500.

Problem 1 Suppose that Home is a large exporter of wheat. Assume that the free-trade world price is $12 per ton and that the Home government provides the domestic producer with an export subsidy of $8 per ton. Because of the export subsidy, the local price increases to $16, while the foreign market price declines to $8. The Home wheat market is illustrated in the figure below. Home Price 24 22 :Home supply NADOONAMON A Home: demand: 2000 4000 6000 8000 . 10000 12000 Quantity a) Using the figure, calculate the effect of the export subsidy on consumer surplus, producer surplus, and government revenue. (6 points) b) Calculate the overall net effect of the export subsidy on Home welfare. (2 points)

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