Suppose that the world price of sugar is $100 per ton.If a
Small country gives its sugar exporters a subsidy of $50 per
Ton, then the world price of sugar will:
A)rise to $150 per ton.
B)fall to $50 per ton.
C)remain at $100 per ton.
D)first rise to $150 per ton, then fall to $100 per ton.

Question

Quizplus · Accepted Answer

The subsidy of $50 per ton given to the sugar exporters does not affect the world price of sugar. Therefore, it will remain at $100 per ton.

Suppose That the World Price of Sugar Is $100 Per