The figure below represents the domestic market for wheat in a small country. Imports of wheat are prohibited. Price ($ per bushel) $180 $160 Sa (domestic supply curve) World price Da (domestic demand curve) 0 40 60 120 150 Quantity (millions of bushels) With an export subsidy of $20 per bushel, the production effect of the export subsidy amounts to $1 billion. $2.2 billion. $300 million. $200 million.

The figure below represents the domestic market for wheat in a small country. Imports of wheat are prohibited. Price ($ per bushel) $180 $160 Sa (domestic supply curve) World price Da (domestic demand curve) 0 40 60 120 150 Quantity (millions of bushels) With an export subsidy of $20 per bushel, the production effect of the export subsidy amounts to $1 billion. $2.2 billion. $300 million. $200 million.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter31: Public Choice And Special Interet Group Politics

Section31.6: Constitutional Economics

Problem 1ST

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