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The gure to the light shows an exporting country's market after its government pays a subsidy to domestic producers that raises the domestic price from
The gure to the light shows an exporting country's market after its government pays a subsidy to domestic producers that raises the domestic price from $1 i] to $12 but lowers the price in the importing country from $1 0 to $3. As a result of this subsidy, the private sector (consumers and rms) in the exporting country experiences a net gain valued at " A. $2. -:..2- B. $15. {3. C. $10. -:..1' D. $24. On the other hand, the payment of the subsidy burdens the exporting country.r government. leading to a net welfare loss for the exporting country given by 0 A. $10 0 B. $14. 0 c. $2 0 o. $24. Price, P 16 D 1 2 3 4 5 6 7 B 9 1!] Quantity, 0
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