Consider a small country that exports steel. Suppose that a ‘protrade’ government decides to subsidise the export of steel by paying a certain amount for each tonne sold abroad. How does this export subsidy affect the domestic price of steel, the quantity of steel produced, the quantity of steel consumed and the quantity of steel exported? How does it affect consumer surplus, producer surplus, government revenue and total surplus? (Hint: The analysis of an export subsidy is similar to the analysis of a tariff.)