Consider the effects of an export subsidy in a small country using thegraph belowDomesticSupply7.P+sPDomesticDemand10183541QWhat is domestic consumption with the export subsidy?O a. 8 unitsO b. 10 unitsOc. 18 unitsO d. 41 units

The export subsidy increases the domestic price by subsidy so the price is Pw+s.

Consider the effects of an export subsidy in a small country using the graph below Domestic Supply P+s Pw W. Domestic Demand 10 18 35 41 Q What is domestic consumption with the export subsidy? O a. 8 units O b. 10 units O C. 18 units d. 41 units

Consider the effects of an export subsidy in a small country using the graph below Domestic Supply P+s Pw W. Domestic Demand 10 18 35 41 Q What is domestic consumption with the export subsidy? O a. 8 units O b. 10 units O C. 18 units d. 41 units

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 6SCQ: A tariff is a tax on imported goods. Suppose the U.S. government cuts the tariff on imported flat...

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