Figure 62 Illustrates the Calculator Market for Mexico,assumed to Be a a Small

question 185

Multiple Choice

Figure 6.2 illustrates the calculator market for Mexico,assumed to be a small nation that is unable influence the South Korean (world) price.Assume the South Korean price to be $60 per calculator.
Figure 6.2.Effects of an Export Subsidy

-Consider Figure 6.2.The South Korean subsidy helps/hurts Mexican manufacturers,since their producer surplus rises/falls by $____.

• A) Helps,rises,$60
• B) Helps,rises,$100
• C) Hurts,falls,$60
• D) Hurts,falls,$100

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