Trade
The US demand and supply curves for wheat is
DUS = 100 – 20P.
SUS = 20 + 20P.
France supply and demand curves of wheat are
DF = 80 – 20P.
SF = 40 + 20P.
2.1.Derive the excess supply and excess demand
2.2.Determine the world price and the quantity of wheat traded at that price.
The US imposes a specific tariff of 0.5 on wheat imports.
2.3.Determine and graph the effects of the tariff on the following: (1) the price of wheat in each country; (2) the quantity of wheat supplied and demanded in each country; (3) the volume of trade.
2.4.Determine the effects of the tariff on the welfare of each of the following groups: (1) US import-competing producers; (2) US consumers; (3) the US government.
2.5.Show graphically and calculate the terms of trade gain, the efficiency loss, and the total effect on welfare of the tariff.
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can you answer question 3 only plz thank you i need it as soon
as possible
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