Use graphical analysis to present the impact of a shift in import demand by the rest of the world (ROW). Be sure to represent the impact on prices, volume of trade, tax revenue and welfare effects on the exporting country as well as the ROW.

The attached is a sample graph (ED=Excess Demand= Import Demand) The questions is asking to assess what would happen if the ED shifted, i.e. there was an increase in the Excess demand.

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