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The figure to the right shows an exporting country's market after its government pays a subsidy to domestic producers that raises the domestic price from
The figure to the right shows an exporting country's market after its government pays a subsidy to domestic producers that raises the domestic price from $10 to Price, P $12 but lowers the price in the importing country from $10 to $8. 16- S As a result of this subsidy, the private sector (consumers and firms) in the 14- exporting country experiences a net gain valued at 12- O A. $2. OB. $10. a b C d 10- O C. $15. O D. $24. e g 8-+ On the other hand, the payment of the subsidy burdens the exporting country government, leading to a net welfare loss for the exporting country given by 6- O A. $2 O B. $14. O C. $10 O D. $24. D 9 10 Quantity
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