Export Policies in Resource-Based and High-Technology Industries Suppose Home is a small exporter of wheat. Initially, the world price is $70 per ton. Now suppose the Home government decides to support its domestic producer with a production subsidy of $10 per ton. Use the accompanying figure to answer the following questions. a. What is the quantity exported under free trade? 60 Exported quantity: units. Incorrect Adjust the graph to show the impact of the producer subsidy, 100 95 Supply then answer the questions below. 90 85 80 75 70 65 A 60 8 55 E 50 45 40 35 30 25 Demand 20 15 10 5 D 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity Incorroct

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