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Study Questions (Ch 06) Consider trade in steel between two countries, Brazil and Spain. Brazil's price is $400 per ton of steel. Suppose that Spain is a "small" country and is unable to influence the Brazilian (world) price of steel. The following table shows Spain's supply and demand schedules. Price Quantity Supplied Quantity Demanded (Dollars) (Million tons) (Million tons) 12 200 10 400 600 800 8 1000 10 N 1200 12 On the following graph, use the blue points (circle symbol) to plot Spain's demand curve and the orange points (square symbol) to plot Spain's supply curve. (Hint: Be sure to use all points given in the table.) Then use the grey line (star symbol) to plot Brazil's supply curve. ? On the following graph, use the blue points (circle symbol) to plot Spain's demand curve and the orange points (square symbol) to plot Sp curve. (Hint: Be sure to use all points given in the table.) Then use the grey line (star symbol) to plot Brazil's supply curve. (?) 1200 1100 O 1000 Demand Supply PRICE (Dollars per ton) SFree trade SSubsidy 2 3 11 12 QUANTITY (Million tons) W (61,6/8 unread) - s... (61,781 unread) - s... Identity Manager D... CENGAGE | MINDTAP Study Questions (Ch 06) Assuming free trade, which of the following statements are correct? Check all that apply. Spain produces 8 million tons of steel. Spain purchases 4 million tons of steel. Spain purchases 8 million tons of steel. Spain's producer surplus is $800 million, and its consumer surplus is $3,200 million. Now suppose the Brazilian government grants its steel firms a production subsidy of $200 per ton. Use the black line (cross symbol) to plot Brazil's subsidy-adjusted supply curve on the previous graph. The new market price of steel is |$ per ton. At this price, Spain produces million tons of steel, consumes million tons of steel, and imports million tons of steel. The subsidy results in which of the following changes? Check all that apply. Spain's consumer surplus rises by $1,800 million. Spain's consumer surplus falls by $1,800 million. Spain's producer surplus rises by $600 million. The Spanish economy as a whole gains $1,200 million due to the subsidy