Question
4. Mixed compote. Investigate which of the outcomes A to E below are suitable for each scenario. Note that an outcome can suit several scenarios.
4. Mixed compote. Investigate which of the outcomes A to E below are suitable for each scenario. Note that an outcome can suit several scenarios. It can also be the case that an outcome does not fit into any scenario; explain in that case why. Motivate your answers well! Scenario I. "A small country facing an import duty" Scenario II. "A large country facing an export subsidy" Scenario III. "A large country facing an import duty"
Outcome A. The consumer surplus before the implementation of the trade policy measure is 900 SEK per week; after the introduction SEK 1,200 per week.
Outcome B. "The country's trade conditions are improved by the trade policy measure."
Outcome C. The producer surplus before the implementation of the trade policy measure is 600 SEK per week; after the introduction SEK 200 per week.
Outcome D. The trade policy measure means that fewer units are consumed domestically by than in the case of free trade. "
Outcome E. Domestic production of the product then reduces the trade policy measure introduced. "
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