https://www.ers.usda.gov/webdocs/publications/41330/31773_aer802k_002.pdf?v=0

Q4 (20 points) Read the article entitled "Effects of eliminating EU's export subsidies" by Susan Leetmaa at the US Department of Agriculture, Economic Research Service (2001). Answer the following questions with information in the article and what you learn about export subsidies under perfect competition (to agriculture) in this course. 1) (4 points) List two alternative policies to export subsidies that are mentioned in the article. 2) (10 points) Draw a graph to analyze the theoretical impact of eliminating export subsidies to pork on the pork price, consumption, production, exports, consumer surplus, producer surplus, government revenue, and regional welfare in EU. Clearly label the graphs for full credits. 3) (4 points) If we assume that Euro is stronger than US Dollar from 2000 (baseline) to 2007/2008, what are the predicted impact (in percentage change) of eliminating export subsidies on the EU and the world market pork prices in 2007/2008? What are the predicted percentage change in EU's production, and exports of pork? Express the percentage change using the quantity and price symbols you use in part 2) for full credits (e.g., percentage change in production = (Q3-Q1)/Q1=5%). 4) (2 points) Would eliminating EU's export subsidies affect Canadians? If yes, how would Canadian welfare change? If no, why not