Figure: Home's Exporting Industry II

question 89

Multiple Choice

Figure: Home's Exporting Industry II
The graph shows the effect of a subsidy on a large country.
(Figure: Home's Exporting Industry II) According to the
Graph, what happens to the nation's consumer surplus as a
Result of the $100 export subsidy?

• A)It increases by $2,500.
• B)It decreases by $1,875.
• C)It increases by $1,875.
• D)It decreases by $2,500.

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