The figure given below shows the national market for mopeds in a country. Dd and Sd are the domestic demand and supply curves of mopeds respectively. 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:
A) 100,000 units.
B) 600,000 units.
C) 700,000 units.
D) 1,200,000 units.
Correct Answer:
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