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Figure 9.2 Partial effect of an Export Subsidy Px ($) 5 4 3.5 32 2 1 151 0 H 'b' 'N' B' E Sx

 

Figure 9.2 Partial effect of an Export Subsidy Px ($) 5 4 3.5 32 2 1 151 0 H 'b' 'N' B' E Sx Dx 10 20 30 35 40 60 __. Refer to the Figure 9.2. Free trade world price of commodity X is $3.5, and government provides $0.50 on each unit of commodity X exported. Government subsidy is and the deadweight loss is 50 X

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