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8) The gure below represents the domestic market for wheat in a small country. Imports 8) of wheat are prohibited. Price (3 per bushel) 35

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8) The gure below represents the domestic market for wheat in a small country. Imports 8) of wheat are prohibited. Price (3 per bushel) 35 (domestic supply curve) World price i D; (domestic demand curve) I ! . 0 40 60 120 150 Quantity (millions of bushels) With an export subsidy of $20 per bushel, the net loss in national well-being as a result of the export subsidy is A) $3 00 million. B) $200 million. C) $500 million. D) $2.2 billion

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