1. (25%) The following figure depicts the international market for soybeans: 10 Export supply Import demand 200 400 600

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1 25 The Following Figure Depicts The International Market For Soybeans 10 Export Supply Import Demand 200 400 600 1 (48.43 KiB) Viewed 37 times

1. (25%) The following figure depicts the international market for soybeans: 10 Export supply Import demand 200 400 600 Quantity (millions of bushels of soybeans) a) What is the world price of soybeans if there is free international trade? b) If the country that exports soybeans pays exporters a subsidy of $2 per bushel, - What is the price of soybeans for consumers in the importing country? - What quantity of soybeans gets traded internationally? - What is the price per bushel got by the exporters after subsidy? What is the total cost of subsidy for the government budget of the exporting country? Show all answers on the graph! Price (dollars per bushel of soybeans) 4 O 00 o 2