If a large country imposes a subsidyO the world price fallsforeign importers gainO all available choicesO foreign exporters lose

A large country means the country which can change the world price. If the country gives a subsidy then world price decreases as the supply of the large country shifts to the right. The decrease in price increases surplus for foreign consumers and decreases for foreign producers.The correct option is option 3rd, all are correct.

Answered: If a large country imposes a subsidy O…

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Economics

If a large country imposes a subsidy O the world price falls O foreign importers gain O all available choices Oforeign exporters lose

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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