Microeconomics 2023 Business Finance

2023 Based on your chapter readings share your understanding of the following Consider a small country


Based on your chapter readings, share your understanding of the following:

Consider a small country that exports steel. Suppose that a “pro-trade” government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad.

1. How does this export subsidy affect the 

  1. domestic price of steel,
  2. the quantity of steel produced,
  3. the quantity of steel consumed, and
  4. the quantity of steel exported?

2. How does it affect

  1. consumer surplus,
  2. producer surplus,
  3. government revenue, and
  4. total surplus? 

3. Is it a good policy from the standpoint of economic efficiency? (Hint: the analysis of an export subsidy is similar to the analysis of a tariff)

Your post should be a minimum of 150 words.

We give our students 100% satisfaction for their assignment, which is one of the most important reasons students prefer us from other helpers. Our professional group and planners have more than ten years of rich experience. The only reason that our inception days, we have helped more than 100000 students with their assignments successfully. Our expert’s group have more than 2200 professionals of different topics, and that not all; we get more than 300 jobs every day more than 90% of the assignment get the conversion for payment.

Place Order Now