Question
The country koko is experiencing a shortage of an essential medicationfollowing a destructive fire at a major pharmaceutical factory. Because of this shortage, consumers in
The country koko is experiencing a shortage of an essential medicationfollowing a destructive fire at a major pharmaceutical factory. Because of this shortage, consumers in koko begin to demand more of the medication from producers in the neighbouring country of Wessex. This action results in a shortage of the medication in Wessex. If the government of Wessexprovides a production subsidy that results in a supply curve shift of agreatermagnitude than the shift caused by koko's increased demand, the market price of the medication will be lower/equal/higher compared to the pre-fire original? [a] (Type L for lower, E for equal, H for higher, N for need more information).
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