Suppose that the world price of sugar is $100 per ton. If a large country gives its sugar exporters a subsidy of $50 per ton, then its exporters will receive (in total):
A) $150 per ton.
B) $50 per ton.
C) more than $100 but less than $150 per ton.
D) $100 per ton.

Question

Quizplus · Accepted Answer

The exporters will receive the world price of sugar ($100) plus the subsidy ($50) for a total of $150 per ton. Therefore, the correct choice is (C) more than $100 but less than $150 per ton.

Suppose That the World Price of Sugar Is $100 Per