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Consider a large country with the following inverse demand and supply functions of golf clubs: P=100-Q , P=20-Q The world price of golf clubs is
Consider a large country with the following inverse demand and supply functions of golf clubs: P=100-Q , P=20-Q The world price of golf clubs is 80. The government decided to support domestic gold club producers and introduced an export subsidy of 20, which led to a decrease in the world price to 70 per club. Losses of the large country, associated with this subsidy are then equal to? [ANSWER: 700]
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