wers Reviewed (2) - Protected View . Saved to this PC . 9 Search (Alt+Q) Mailings Review View Help Unless you need to edit, it's safer to stay in Protected View. Enable Editing 4): THIS IS INDIVIDUAL WORK (NOT GROUP WORK). Each must submit their own answers. Plagiarism will be reported and due disciplinary measures taken. Question 1. India a small economy produces and exports tractors (small in world tractor market). The Indian demand and supply of tractors is provided in the following diagram. The current world price of tractors is $1600. Suppose the government of India then introduces a $400 export subsidy for tractors. supply 2000 World price + subsidy 1600 World price Each cell = 100 units 400 Demand 500 1500 2900 Each cell = 100 units a). Identify on the graph AND compute the change in producer and consumer surplus when the Government of India introduces an export subsidy [2 marks] b). How much in total will the government pay out in export subsidy? [1 mark] c). Identify on the graph AND compute the dead weight loss due to export subsidy [1 mark]