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

Question 55

Multiple Choice

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) What is the value of total
Subsidy payments to Freedonia's widget exporters?


A) $825
B) $600
C) $225
D) $125

Correct Answer:

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