Question: Please, could you help me solving this problem? I need it explained. What is the effect on daily EU consumer surplus? (Use a positive number

Please, could you help me solving this problem? I need it explained.



What is the effect on daily EU consumer surplus? (Use a positive number for an increase and a negative number for a decrease.) What is the effect on daily EU producer surplus? (Use a positive number for an increase and a negative number for a decrease.)How much does this subsidy program cost the EU daily? (Use a positive number for the cost.) What is the daily change in social welfare and why? "Hint: Welfare is the difference between the cost of the subsidy program and the increase in producer and consumer surplus. Use a positive number for an increase and a negative number for a decrease.)Assume that the EU subsidizes the exports of tomatoes to support employment in agriculture. Supply and demand of European producers and consumers are equal top = 200 + 5:15 andp = 500 qd respectively [where prices are in and quantities in tons). Under free trade. the EU is a net exporter of tomatoes and exports 30 tons every day at 475 per ton. Assume that under free trade, the global price is 4?5 per ton. Now, to support employment in agriculture, the EU starts subsidizing every ton of exports by about 4.2% such thatthe price European producers get, after the subsidy, rises from 475fton to 495r'ton. Assume the EU is a price taker and cannot affect the world price
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