Consider Figure 8.1. Suppose instead that the Mexican government provides a subsidy of $200 per ton to its steel producers, as indicated by the supply schedule SM (with subsidy). The quantity of imports equals:
A. 1 ton
B. 2 tons
C. 3 tons
D. 4 tons
Answer:D
Consider Figure 8.1. Suppose instead that the Mexican government provides a subsidy of $200 per ton to its steel producers, as indicated by the supply schedule SM (with subsidy). The quantity of imports equals:
A. 1 ton B. 2 tons C. 3 tons D. 4 tons