In early 2014, China decided to cancel the 1.3 million tons of rice import contract with Thaolanf. Using demand and supply analysis, answer the following questions with supporting graphs.
a) What will the effect of the cancellation of the import contract on the equilibrium price and quantity of rice in Thailand?
b) What will be the effect of the cancellation of the import contract km the equilibrium price and quantity of rice in China?
c) If China increases the import of rice from Vietnam in order to stabilize 5 he domestic price of rice, how will it affect the equilibrium price and quantity of rice in vietnam?
d) Suppose the Vietnamese rice producers have built the storehouses and expect the increasing demand for rice from China will keep pushing the price up in the fiture. How would you expect the current equilibrium price and quantity of rice in Vietnam to change, compare to those before China increases the import of rice from Vietnam?