Draw a supply and demand diagram for the purpose of demonstrating the welfare effects of a quota in a small country. Describe prices and trade before and after the imposition of the quota. Using areas on the diagram, calculate the total gains and/or losses from the imposition of a quota. Explain the impact on the various economic actors that are affected by the quota..

Suppose the world price of corn, P*, is higher than Mexico’s autarky price, and Mexico currently offers its corn producers an export subsidy $s/unit. Use a domestic-market graph to:   a) show the effect of removing the export subsidy on Mexico’s domestic price, domestic supply, domestic demand, export quantity, consumer surplus, producer surplus, and government expenditure assuming that Mexico is a small country; b) Assuming that consumers are also taxpayers that used to pay for the government’s subsidy expenditure in the above graph, identify the change in consumer surplus due to the removal of the export subsidy.   Please make sure to graph and answer both parts of the question

The figure below shows the domestic demand (Dd) and domestic supply (Sa) curves of mopeds in a country before an import quota is imposed by the government. After the imposition of the quota, the maximum import quantity is QQ: Sa Sa+ Q. $800 $750 $715 World price New export price with quota Da 0.4 0.5 0.6 1.5 1.8 2.0 Quantity (Millions of Mopeds per year) If the government auctions the quota licenses, the importing nation will lose $29.75 million. O gain $21.5 million. O gain $31.5 million. lose $10 million.

Explain how a US QUOTA on foreign dairy would affect each group in the economy. Use the picture below to answer the question, each word is only used once.