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Mean = 86 MS mean = 82 PhD mean = 93 PowerPoint PPT Presentation


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Mean = 86 MS mean = 82 PhD mean = 93. Part 1: going from no-trade to trade at world prices. P. S. consumers add consumption, and gain G+H+I+J. A. Ps=100. D. E. B. C. F. Pe =200. H. G. K. producers reduce output and lose G+H. I. J. Pw=100. L. N. O. M. D. Q.

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Mean = 86 MS mean = 82 PhD mean = 93

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Mean 86 ms mean 82 phd mean 93

Mean = 86MS mean = 82PhD mean = 93


Mean 86 ms mean 82 phd mean 93

Part 1: going from no-trade to trade at world prices

P

S

consumers add consumption, and gainG+H+I+J

A

Ps=100

D

E

B

C

F

Pe=200

H

G

K

producersreduce outputand loseG+H

I

J

Pw=100

L

N

O

M

D

Q

Efficiency gain is I + J,

Therefore efficiency loss of autarky is -(I+J)


Mean 86 ms mean 82 phd mean 93

Part 2: going from no-trade to export subsidy

P

S

consumers face higherprices and lose-(B+C)

A

Ps=100

D

E

B

C

F

Pe=200

H

G

K

producersincrease outputand gainB+C+D+E

I

J

Pw=100

L

N

O

M

D

Q

Export subsidy costs –(C+D+E+F)

Therefore efficiency loss is –(C + F)


Mean 86 ms mean 82 phd mean 93

Combining: going from world price to export subsidy

P

S

A

Ps=100

D

E

B

C

F

Pe=200

H

G

K

I

J

Pw=100

L

N

O

M

D

Q

Combined efficiency loss is –(C + F + I + J)


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