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Suppose Home is a small exporter of wheat and the world price is $100 per ton. Now suppose the Home government decides to support its
Suppose Home is a small exporter of wheat and the world price is $100 per ton. Now suppose the Home government decides to support its domestic producers with a production subsidy of $40 per ton. What is the change in producer surplus as a result of the production subsidy?
$1,800
$600
$1,600
$200
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