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Business, 02.09.2021 20:20 keke6361

Suppose the "pro-trade" government decides to subsidize steel exports by paying a certain amount for each ton sold abroad. How does this export subsidy affect the domestic price of steel, the quantity produced, the quantity consumed, and the quantity exported of steel? How does it affect consumer surplus, producer surplus, government revenue, and total surplus? Is it a good policy from the point of view of economic efficiency?

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