Solution 5 . a. b. - If the United States and Kazakhstan entered into free trade with only one another, what would be the price of axseed, and what quantity of flaxseed would be traded? . For each of the following four constituent groups, determine whether free trade between the United States and Kazakhstan would help or harm the members of that group. Calculate the change in consumer or producer surplus in each coun try as necessary to support your claim. i. The buyers of flaxseed in Kazakhstan ii. The sellers of axseed in Kazakhstan iii. The buyers of axseed in the United States iv. The sellers of flaxseed in the United States Suppose the sellers offlaxseed in the importing country successfully lobby for protection in the form of a $4 tariff per bushel of axseed. Describe the impact of this tariff on flaxseed trade and on the consumer and producer surpluses you calculated in part d. How much deadweight loss does this tariff generate? Kazakhstan produces more flaxseed at any price than does the United States, so it must be cheaper to produce in Kazakhstan. The United States demands more axseed at any price, so it must be more highly Valued in the United States. The table should look like this: At a price of... the U.S. would be willing to... and Kazakhstan would be willing to... $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 C. import 12 million bushels import 4 million bushels import 10 million bushels import 2 million bushels import 8 million bushels neither import nor export import 6 million bushels export 2 million bushels import 4 million bushels export 4 million bushels import 2 million bushels export 6 million bushels neither import nor export export 8 million bushels export 2 million bushels export 10 million bushels export 4 million bushels export 12 million bushels export 6 million bushels export 14 million bushels It can be seen on the table that at a price of$10, the amount offlaxseed that the United States is willing to import is equal to the amount of flaxseed that Kazakhstan is willing to export. Therefore, the price at which they trade will be 1510/ bushel and the quantity traded will be 4 million bushels. In each case, the change in surplus will be equal to (change in price) >