Describe and illustrate with a graph what happens if a country that imports food decides to put stronger health and safety regulations on food imports.
Describe and illustrate with a graph what happens if a country that imports food decides to put stronger health and safety regulations on food imports. Specifically, what will happen to: a. Quantities produced and consumed domestically and the imported amount of food; and b. producer and consumer surpluses and the dead weight loss within the importing country, compared to unrestricted free trade. Do the same for the effect of an export subsidy introduced by a food exporting country.
