Suppose that a small, tropical country produces mangoes for domestic consumption and possibly for export. The national demand and supply curves for mangoes in this country are given by the following:

Suppose that a small, tropical country produces mangoes for domestic consumption and possibly for export. The national demand and supply curves for mangoes in this country are given by the following: P = 100 - M (national demand) P =25 + M (national supply) where P denotes the relative price of mangoes and M denotes the quantity of mangoes (in metric tons). a. Assume the world price is $75. Suppose the government offers a $10 export subsidy to domestic producers. Will this small country export or import mangoes? If so, how many tons? b. Compute the cost to the government for the imposition of the export subsidy. c. Compute the net national welfare effect of an export subsidy to this country