EXPORT TAXES

1. EXPORT TAXES

2. EXPORT TAXESCOLLETED DIRECTLY FROM EXPORTER

3. OR A GOVERNMENT MARKETING BOARD THAT PAYS PRODUCERS A PRICE LOWER THAN THE WORLD PRICE.

4. EXPORT TAXES ARE MOST PREVALENT IN DEVELOPING COUNTRIES

5. SOURCE OF INCOMEANDKEEP STAPLE GOOD PRICES LOW

6. HIGH FOOD PRICES = UNHAPPY POPULATION = NEW GOVERNMENT

7. PRICE EXPORT TAX – SMALL COUNTRY S PW PD D QP QC QUANTITY

8. PRICE EXPORT TAX – SMALL COUNTRY S PW TAX PD D QP QC QUANTITY

9. PRICE EXPORT TAX – SMALL COUNTRY S PW TAX PD D QP QC QUANTITY QP’ QC’

10. PRICE EXPORT TAX – SMALL COUNTRY GOV REVENUE S PW TAX PD D QP QC QUANTITY QP’ QC’

11. PRICE EXPORT TAX – SMALL COUNTRY Producer Loss S PW TAX PD D QP QC QUANTITY QP’ QC’

12. PRICE EXPORT TAX – SMALL COUNTRY Consumer Gain S PW TAX PD D QP QC QUANTITY QP’ QC’

13. PRICE EXPORT TAX – SMALL COUNTRY Net Loss due to tax S PW TAX PD D QP QC QUANTITY QP’ QC’

14. Export Taxes and Large Countries

15. Exporting Country World P P Q Q Quantity traded

16. Exporting Country World es P P s Pw’ Pw Pe ed Exports reduced d Q Q Quantity traded

17. Exporting Country World es P P s Loss to the world Pw’ Pw Pe ed Exports reduced d Q Q Quantity traded

18. Price Supports in Exporting CountriesOne method used to support domestic prices is for the government to purchase excess quantities to raise prices

19. PRICE S PS PD Govt purchases D QUANTITY QC QP

20. PRICE S Effective Demand PS PD Govt purchases D QUANTITY QC QP

21. PRICE Release Price S Pr PS PD Amount held in storage Govt purchases D QUANTITY QC QP

22. DEFICIENCY PAYMENTSMARKET PRICE IS ALLOWED TO PREVAIL BUT THE GOVERNMENT MAKES UP THE DIFFERENCE

23. PRICE S PT PD D QUANTITY QC QP

24. PRICE S PT PD D QUANTITY QC QP

25. PRICE IF THERE WERE NO TRADE S PT DEFICIENCY PAYMENT PD D QUANTITY QP QC

26. PRICE S PT EFFECTIVE SUPPLY CURVE PD D QUANTITY QC QP

27. Exporting Country World ES P P PT PW PW ED Q Q Quantity traded