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Hello I am having trouble with an agriculture economics question, I cannot seem to understand the steps on calculating the change in consumer surplus and
Hello I am having trouble with an agriculture economics question, I cannot seem to understand the steps on calculating the change in consumer surplus and change in producer surplus in the importing country after trade started to happen? I have provided images of the three panel diagram and question below.
All questions are based on the following three panel diagram. A. The U.S. B. International C. The Rest of the World's Motorbike Market Motorbike Market Motorbike Market Price Price Price ($/unit) ($/unit) ($/unit) soop Sus pretrade World price price with trade Exports 2500 2500 Sex St 2500 Import; Pus 1750 1750 DEX DY 10 40 70 Quantity bo Quantity 15 45 75 Quantity (thousands) (thousands) (thousands) 5us = U.S. supply Sy = Rest-of-world supply of exports S, = Rest of world's supply Dus = U.S demand (S. = 5, - DF) D/ = Rest of world's demand Din = U.S. demand for imports (Din = Dus - Sus)Calculate the change in consumer surplus and change in producer surplus in the importing country after trade started to happenStep by Step Solution
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