Suppose That the World Price of Sugar Is $100 Per

question 107

Multiple Choice

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 there will be:

• A)no change in its consumer surplus.
• B)a loss in consumer surplus.
• C)a gain in consumer surplus.
• D)an increase in domestic consumption.

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Definitions:

Negative Reinforcement

The strengthening of a behavior by removing or avoiding a negative outcome or aversive stimulus when the behavior is performed.

Escape Response

A behavior aimed at moving away from or avoiding an unpleasant stimulus or situation, often studied in the context of aversive conditioning.

Passive Avoidance

A learning process in which an individual learns to refrain from engaging with a negative stimulus to avoid an unpleasant outcome.

Active Avoidance

The action of learning to evade a disliked stimulus by performing specific behaviors to ensure the stimulus is not encountered.