Domestic demand for fidget spinners in the domestic economy is characterized by the equation P = 100 – 2Q, domestic supply is characterized by the equation Q = P - 10, and the world price is equal to 60. Then the export subsidy of 10 per unit will lead to a decrease in the world price by 10 O increase domestic exports by 10 increase domestic exports by 15 change nothing

Domestic demand for fidget spinners in the domestic economy is characterized by the equation P = 100 – 2Q, domestic supply is characterized by the equation Q = P - 10, and the world price is equal to 60. Then the export subsidy of 10 per unit will lead to a decrease in the world price by 10 O increase domestic exports by 10 increase domestic exports by 15 change nothing

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 8PA

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Domestic demand for fidget spinners in the domestic economy is characterized by the equation P = 100 – 2Q, domestic supply is characterized by the equation Q = P – 10, and the world price is equal to 60. Then the export subsidy of 10 per unit will change nothing lead to a decrease in the world príce by 10 O increase domestic exports by 10 O increase domestic exports by 15
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