SCENARIO: FREEDONIAN EXPORTS in the Small Country of Freedonia, the Domestic Demand for Domestic

SCENARIO: FREEDONIAN EXPORTS
In the small country of Freedonia, the domestic demand for
Widgets is represented by P = 100 - 3Q; the home supply
Of widgets is represented by P = 1Q.
Reference: Ref 10­4
(Scenario: Freedonian Exports) Now let the government of
Freedonia give a $15 per unit subsidy on each widget
Exported.What will be the new price and quantity
Consumed in the Freedonia domestic market?

A) $20 and 60 units
B) $55 and 15 units
C) $40 and 15 units
D) $25 and 25 units