a) Prices of soybean per bushel in market X and Y are $6 and $5 respectively b) The transportation cost per 100 miles per bushel of soybean is $0.50 c) The distance between the two market is 1000 miles Suppose the price in market Yincreases to $6 and the transportation cost to market Y decreases to $0.40, what will be the new market boundary? 6. Using diagrams, clearly illustrate government costs of supporting prices above equilibrium through a target price program. Use a welfare analysis to determine welfare change among consumers, producers, taxpayers and net for US and ROW. Also, determine net change in world welfare. Explain your diagram. 7. Assume that US is a large importer of fresh tomatoes. Following the advise of the Florida Tomato Growers US government decided to impose import tax on tomatoes coming to US from the rest of the world (ROW). Illustrate the welfare impact of such import policy using a diagram. Explain the curves and the process shown in the diagram. Also explain the difference between an import tax and an import quota. a) Prices of soybean per bushel in market X and Y are $6 and $5 respectively b) The transportation cost per 100 miles per bushel of soybean is $0.50 c) The distance between the two market is 1000 miles Suppose the price in market Yincreases to $6 and the transportation cost to market Y decreases to $0.40, what will be the new market boundary? 6. Using diagrams, clearly illustrate government costs of supporting prices above equilibrium through a target price program. Use a welfare analysis to determine welfare change among consumers, producers, taxpayers and net for US and ROW. Also, determine net change in world welfare. Explain your diagram. 7. Assume that US is a large importer of fresh tomatoes. Following the advise of the Florida Tomato Growers US government decided to impose import tax on tomatoes coming to US from the rest of the world (ROW). Illustrate the welfare impact of such import policy using a diagram. Explain the curves and the process shown in the diagram. Also explain the difference between an import tax and an import quota