Problem 3: Welfare Analysis of Trade (12 points) The graph below shows domestic supply and demand for steel in the Unite

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Problem 3 Welfare Analysis Of Trade 12 Points The Graph Below Shows Domestic Supply And Demand For Steel In The Unite 1 (11.44 KiB) Viewed 23 times

Problem 3 Welfare Analysis Of Trade 12 Points The Graph Below Shows Domestic Supply And Demand For Steel In The Unite 2 (29.3 KiB) Viewed 23 times

Problem 3 Welfare Analysis Of Trade 12 Points The Graph Below Shows Domestic Supply And Demand For Steel In The Unite 3 (19.5 KiB) Viewed 23 times

Problem 3: Welfare Analysis of Trade (12 points) The graph below shows domestic supply and demand for steel in the United States under autarky Price (1) K Quantity of steal thousands of Sons) Under autarky, the domestic equilibrium quantity is thousands of tons, and the equilibrium price is $ per ton

Now suppose the U.S. opens up to trade, and the world price of steel is $200 per ton At the world price, the domestic quantity supplied is The United States will d. Complete the table below by calculating Consumer, Producer, and Total Surplus under autarky and after opening up to trade thousand tons of steel, and the quantity demanded is Consumer Surplus When calculating surplus, be mindful of our units. In this case we have price per ton on the y-axls, and thousands of tons on the x-axis. That means when we calculate surplus, our answers will be in thousands of dollars. Don't forget to add the thousands when you enter your answers below! Producer Surplus thousand tons of steel. In the first blank enter either import" or "export" and in the 2nd blank enter the quantity of import/exports One additional reminder: When we calculate surplus after trade, we will have a single price, but two quantities. We will need to use the domestic quantity supplied for Producer Surplus, and the domestic quantity demanded for Consumer Surplus Total Surplus thousand tons Under Autarky 5 With Trade 5pt

e. When the U.S. opens up to trade, consumer surplus Select L Does opening up to trade cause deadweight loss in the market for poultry? Select Edit View met Format Tool Table producer surplus Select Briefly describe the welfare impacts of opening up to trade. Which group) benefited from trade? Which groups are worse off? is free trade efficient? How do you know? Think about the tradeoffs involved in opening up to trade. Economists are generally pro-trade because of gains from trade, but there are always going to be downsides Regardless of whether a country is a net-importer or exporter, there will be one party which is made worse off by trade. BIVAV and total surplus Select) √3