Figure: Home's Exporting Industry II
The graph shows the effect of a subsidy on a large country.
(Figure: Home's Exporting Industry II) According to the
Graph, what happens to the nation's consumer surplus as a
Result of the $100 export subsidy?
A)It increases by $2,500.
B)It decreases by $1,875.
C)It increases by $1,875.
D)It decreases by $2,500.

Question

Figure: Home's Exporting Industry II
The graph shows the effect of a subsidy on a large country. 
(Figure: Home's Exporting Industry II) According to the
Graph, what happens to the nation's consumer surplus as a
Result of the $100 export subsidy?
A)It increases by $2,500. 
B)It decreases by $1,875. 
C)It increases by $1,875. 
D)It decreases by $2,500.

Quizplus · Accepted Answer

The Answer of Figure: Home's Exporting Industry II
The graph shows the effect of a subsidy on a large country. 
(Figure: Home's Exporting Industry II) According to the
Graph, what happens to the nation's consumer surplus as a
Result of the $100 export subsidy?
A)It increases by $2,500. 
B)It decreases by $1,875. 
C)It increases by $1,875. 
D)It decreases by $2,500.