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Questions:

a.Draw a graph and use it to explain and illustrate the impact of trade on consumers, producers and the Australian economy.
b. Now Canada imposes an import quota on Australian beef. Draw a graph and
c. explain how this quota would influence the following factors in Canada:
(i) price of beef; (ii) consumer surplus (CS) and producer surplus (PS); (iii) beef  importers’ gain; (iv) efficiency of the beef market.
 
c. The volume of import quota on Australian beef is less than Australia’s total export volume of beef to Canada. Explain how this import quota would influence the following factors in Australia: (i) quantity of beef exported to Canada; (ii) price of beef; (iii), consumer surplus (CS) and producer surplus.
 
d. Suppose that the government decides to subsidise exports of beef by paying a certain amount for each tonne sold overseas. Explain how the export subsidy would affect the following factors in Australia: (i) domestic price of beef; (ii) the quantity of beef produced; (iii) the quantity of beef consumed, and the quantity of beef exported; (iv) consumer surplus, producer surplus, and
government revenue. 
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