The government introduces a subsidy s10 per unit of sugar


A large country has a domestic demand for sugar given by p=100-Q and domestic supply given by P=Q. The world demand for the country's exports is given by P=50-Q.

The government introduces a subsidy s=10 per unit of sugar exported and at the same time it doesn't let any imports in. Calculate the new (i)domestic price, consumption and production, (ii) world price and quantity exported by the country.

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Econometrics: The government introduces a subsidy s10 per unit of sugar
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