(Solved): International Trades Find of Chapter Problem The following Lables whow the domcuie supply and deman ...

International Trades Find of Chapter Problem The following Lables whow the domcuie supply and demand schodules for buchels of llausced (used as an cdible oil and a nutrition xopplement) in the thited Statos and Karaklstan, with prices measured in \( 1 / 5 \), dollars and quantities mearured in millicens of buchcls. Kunakhistan: E. Suppose the sellers of flaxsoed in the importung country successfully lobkty for protection in the form of a \( \$ 4 \) larill per bushel of flaxwood. Deweribe the impact of this tarift on flaxsced trade and on the consumer and producer sarplases buyers and sellem received when there was no trade. How much dcadweight loss docs this tanil gobcrate? Calculake the following with the tarif in place. Number of bushels traded: million Kayakh netler's price; 5 per bushel U.S. buyer's price: 5 The benelits and losses of rextricted trade (versus no trade) are than for frce trade. For the next four calculations, you are acked to determine the change in the value when the policy changes from no trade to restricted trade with the tariff. i. Karakh buyers' consumer surplus falls by: 5 million ii. Kayakh sellers' producce surplus risex by: \( \$ \) million iii. U.S. buychi consumce surplus rises by: 5 million iv, U.S. scllers' prodocer surplus falls by: \( \mathbf{5} \) million Now, compare these gains and lonses from rostricted tradc, as well as the tariff revenue gaincd by the importing government, to the gains from free trade in part d. Dcad weight lows of the tariff: 5 million