Suppose That the World Price of Sugar Is $100 Per

question 74

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 it will:

• A)enjoy a gain in its total welfare.
• B)have neither a loss nor a gain in its total welfare.
• C)suffer a loss in its total welfare.
• D)have an increase in its consumer surplus only.

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Definitions:

Saline Water

Water that contains a significant amount of dissolved salts, typically found in oceans and saltwater lakes.

Cold Currents

Ocean currents that move cold water from polar or temperate regions towards the equator, influencing regional climates and marine ecosystems.

July SST's

Sea Surface Temperatures measured globally or regionally in the month of July.

Monsoons

Monsoons are seasonal wind patterns that cause wet and dry seasons throughout much of the tropics, bringing significant rainfall during part of the year.