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...
The demand and supply curves are given by: Q_D = 60 - 0.01P; \; Q_S = -3 + 0.2P, respectively. A tax of $105 per unit is imposed on supply. Find the after-tax producer surplus. Assume that the demand and the sup...