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 subsidy of $50 per ton will be added to the world price of $100 per ton, making the total price received by exporters $150 per ton.

Suppose That the World Price of Sugar Is $100 Per