TOPIC: Soybean Export Tax

QUESTION:

Suppose that the export demand curve for soybeans from Argentina is PD=575 - 15XD, and Argentina's export supply curve is PS = 50+ 15XS. (Prices are in dollars per metric ton and quantities are in millions of metric tons.) Calculate the free-market equilibrium. Now suppose that a 29% ad valorem tax is levied on soybean exports. Calculate the new equilibrium, including the new level of exports, the domestic price, the world price, and government export tax revenues. Show your work.