Assuming that the export subsidy remains 20 - what are the


Consider the export subsidy shown in given figure.

Assuming that the export subsidy remains $20, what are the effects of a decline in the world price from $100 to $90?

Show the effects using a graph, and explain them.

716_Figure.jpg

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Financial Econometrics: Assuming that the export subsidy remains 20 - what are the
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