Suppose That the World Price of Sugar Is $100 Per

question 30

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 the world price of sugar will:

• A) fall by less than $50 per ton.
• B) fall by $50 per ton.
• C) remain at $100 per ton.
• D) rise to $50 per ton.

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