Figure 6.2 illustrates the calculator market for Mexico,assumed to be a small nation that is unable influence the South Korean (world) price.Assume the South Korean price to be $60 per calculator.
Figure 6.2.Effects of an Export Subsidy

-Consider Figure 6.2.For Mexico's producers and consumers as a whole,the South Korean subsidy leads to a:

Question

Figure 6.2 illustrates the calculator market for Mexico,assumed to be a small nation that is unable influence the South Korean (world) price.Assume the South Korean price to be $60 per calculator.
Figure 6.2.Effects of an Export Subsidy
 
-Consider Figure 6.2.For Mexico's producers and consumers as a whole,the South Korean subsidy leads to a:

Quizplus · Accepted Answer

The subsidy leads to a lower price for Mexican consumers, which increases their consumer surplus. It also leads to a higher price for Mexican producers, which increases their producer surplus. The total welfare gain is the sum of the consumer surplus and producer surplus gains, which is $120.

Figure 62 Illustrates the Calculator Market for Mexico,assumed to Be a a Small