China is a major producer of grains, such as wheat, corn, and rice. In 2008 the...

China is a major producer of grains, such as wheat, corn, and rice. In 2008 the Chinese government, concerned that grain exports were driving up food prices for domestic consumers, imposed a tax on grain exports. a- Draw the graph that describes the market for grain in China. Use this graph as the starting point to answer the following questions. b- How does an export tax affect domestic grain prices in China? c- How does it affect the welfare of Chinese’ consumers, the welfare of Chinese’ producers, and government revenue? d- What happens to total welfare in China, as measured by the sum of consumer surplus, producer surplus, and tax revenue?

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Rahul Sunny answered 1 week ago

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