Discussion Post
• Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export tax on a good Y by a home country's government on (a) the home country's consumers of Y, (b) the home country's producers of Y, and (c) the home government's tax revenues. (Assume that the country is a "small" country.) Then evaluate the "net welfare effect" of the tax on the country. Why might a country want to impose an export tax? Explain.
• Suppose now that the country imposing the export tax in part (I) of this question is a "large" country rather than a "small" country. Is it an advantage or a disadvantage for a country to be "large" rather than "small" when it imposes an export tax? Explain.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.