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 its exporters will receive:
A)$150 per ton.
B)$50 per ton.
C)$100 per ton.
D)first $150 per ton, then $100 per ton.

Question

Quizplus · Accepted Answer

The exporters will receive the world price of $100 per ton plus the subsidy of $50 per ton, so the total price they receive will be $150 per ton.

Suppose That the World Price of Sugar Is $100 Per