The Presence of an Export Subsidy (Assuming That Foreign Demand

Multiple Choice

The presence of an export subsidy (assuming that foreign demand is not perfectly-Inelastic)

A) will increase the price of the export good in the home market and decrease the well-Being of home consumers.
B) will decrease the price of the export good in the home market and increase the well-Being of home consumers.
C) will lead to a net gain in welfare in the home country since producer surplus is Enhanced.
D) can lead to a higher import price in the importing country in the large-country case.