Domestic demand for fidget spinners in the domestic economy is characterized by the equation P=100−2Q, domestic supply is characterized by the equation Q=P−10, and the world price is equal to 60. Then the export subsidy of 10 per unit will a) increase domestic exports by 15 b) change nothing b) lead to a decrease in the world price by 10 c) increase domestic exports by 10

Domestic demand for fidget spinners in the domestic economy is characterized by the equation P=100−2Q, domestic supply is characterized by the equation Q=P−10, and the world price is equal to 60. Then the export subsidy of 10 per unit will a) increase domestic exports by 15 b) change nothing b) lead to a decrease in the world price by 10 c) increase domestic exports by 10

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter35: International Trade Restrictions

Section: Chapter Questions

Problem 3E

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