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The first 10 questions apply to Figure 1 -- which illustrates the case of a large exporter that applies a per-unit specific production subsidy of
The first 10 questions apply to Figure 1 -- which illustrates the case of a large exporter that applies a per-unit specific production subsidy of $s/unit.
What is the new world price after the production subsidy is applied?
Question 1Answer
a.
P3
b.
P2
c.
P1
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