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The figure below shows the national market for mopeds in a small country. Da and Sa are the domestic demand and supply curves of mopeds
The figure below shows the national market for mopeds in a small country. Da and Sa are the domestic demand and supply curves of mopeds respectively. Price $800 - - -.World price plus subsidy $750 World price line O 0.5 0.6 Quantity (Millions of mopeds per year) If there is initially free trade, and then a $50 per unit subsidy is given to the domestic producers of mopeds, domestic production will increase by
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