The following figure depicts the international market for soybeans. What is the

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The following figure depicts the international market for soybeans. What is the world price of soybeans if there is free trade between these countries? If the country that imports soybeans imposes a tariff of $2 per bushel, what is the world price of soybeans and what quantity of soybeans gets traded internationally? What is the price of soybeans in the importing country? Calculate the tariff revenue. If the importing country in problem (a) imposes a quota of 300 million bushels, what is the price of soybeans in the importing country? What is the revenue from the quota and who gets this revenue? If the exporting country in problem (a) imposes a VER of 300 million bushels of soybeans, what is the world price of soybeans? What is the revenue of soybean growers in the exporting country? Which country gains from the VER?

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