a. The exporters of this country receive which price after subsidy? Explain b. W

Question

a. The exporters of this country receive which price after subsidy? Explain

b. What is the amount of export after subsidy?

c. What is the effect on consumers in the home country?

d. What is the effect on producers in the home country?

e. What is the effect on foreign consumers?

f. What is the dead weight loss in the home country?

g. What is the dead weight loss in the foreign country?

h. What is the dead weight loss in the world?

(a) Home Market (b) World Market Home price World price Home export supply, X b+ d X-s Foreign import demand, M D2 D1 S1 S2 Quantity Exports

Explanation / Answer

P*+s X2 No change Increased sales, higher profits Increased variety of goods at lower prices b+d f b+d+f

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