Suppose That the World Price of Sugar Is $100 Per

question 104

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:

Value Chain

The specific sequence of activities that creates products and services with value for customers.

Specific Sequence

A particular order or arrangement in which related actions, events, or elements follow each other.

Goods And Services

The physical products (goods) and intangible offerings (services) that fulfill the needs or wants of consumers.

Just-in-time Scheduling

A strategy used in manufacturing and logistics to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.