XXX produces onions that it exports to the world. It institutesan export tariff.  Assume the initial price is $12.40 perbushel in world markets.  Assume the export tariff was$6.25.  Before the tariff, Indian consumption was is 11million bushels and production is 15 million bushels.  Afterthe export tariff, Indian consumption was 12.75 million bushels andproduction is 13.5 million bushels. (a) Calculate the deadweightloss for the country?  (b) Calculate the gain/loss toproducers?

The answer for a is 10.156,250 M and the answer for bis -89.0625 M.  Please help me with providing stepsand graphs to solve this problem!! GRAPH, please! 

Answer rating: 100% (QA)

To solve this problem well first calculate the change in consumer and producer surplus due to the imposition of the export tariff and then use these c... View the full answer