sa

Given that the world supply curve is horizontal at the world price for a given good, can a subsidy on imports raise welfare in the importing country? 1.) Use the line drawing tool to show the effect of a $2 per unit subsidy by shifting world supply. Label this line 'S,'. 2.) Use the point drawing tool to indicate the quantity demanded and price with the subsidy. Label this point Price, P Carefully follow the instructions above, and only draw the Un Sworld required objects. 3- 4 D 4 5 6 7 8 9 10 11 Quantity