The Figure Below Shows the Demand (D) and Supply (S)

question 66

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of corn syrups.Figure 21.3

-One of the negative impacts of export subsidy is that:

• A)the price of the domestic good increases in the world market.
• B)the domestic supply of the goods increases more than proportionately than increase in demand.
• C)the domestic cost of production of the exportable increase.
• D)it results in a general deflation and hence the domestic producers incur losses.
• E)it is financed by the taxes paid by domestic consumers and hence it harms them.

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