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Question 3 (25 points) In Brazil, the domestic supplyr function of wheat is given by and the domestic demand for wheat is . a. What
Question 3 (25 points) In Brazil, the domestic supplyr function of wheat is given by and the domestic demand for wheat is . a. What is the equilibrium price and quantity of wheat if there is no trade? |2 points] Is. Suppose the government institutes a tax oft = $2 per unit of wheat sold. What is the equilibrium quantity of wheat sold after the tax is imposed? What price do consumers pay? What price do suppliers receive? [10 points] c. How much revenue does the tax raise? What is the deadweight loss of the tax? [3 points] a. Brazil decides to eliminate the tax and open up its wheat markets to imports. The world price for wheat is $5 per bushel. If there is perfectly free trade. how much wheat will be consumed? How much of it will he produced domestically and how much will be imported
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