Corn is sold in a perfectly competitive closed market. The market demand and supply functions for corn are Demand: Qf=20-2pP Supply: Q'=2P-4 where Q* is quantity demanded and Q is quantity supplied, both measured in billions of bushels per year, and P is price in dollars. 1. The government imposes a specific tax of $1.00 on this market. c) d) e) gl h) a) Calculate the deadweight loss associated with the imposition of this specific tax. b) Mow assume that the government does not impose a specific tax on this market. Instead, the government wishes to raise the market price of corn to 58 per bushel and chooses to use a price floor to raise the price of corn to 58 per bushel. Calculate the new consumer surplus, producer surplus and deadweight loss. Mow assume that the government chooses instead of a price floor, to use a production quota to raise the price of corn to $9 per bushel. What size quota must the government impose? Is there a net loss or a net gain to producers relative to the equilibrium outcome? If so, how much? Mow assume that the government does not regulate the market for corn in any way. Assume also that there is a perfectly elastic import supply at $3.00 per bushel. Calculate the domestic consumer and producer surplus in an unregulated open market. How much revenue do foreign producers earn by selling in Canada? Calculate the net domestic and economy-wide gains and losses relative to the open market outcome, including revenue to the government, of imposing a $1.00 per bushel tariff on imports. s there an overall gain or loss to the economy? If so, how much? Draw a graph illustrating your answer to part (a) above