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The Figure Given Below Shows the National Market for Mopeds

Question 39

Multiple Choice

The figure given below shows the national market for mopeds in a country. Dd and Sd are the domestic demand and supply curves of mopeds respectively. The figure given below shows the national market for mopeds in a country. D<sub>d </sub>and S<sub>d</sub> are the domestic demand and supply curves of mopeds respectively. If there is initially free trade, and then a $50 per unit subsidy is given to the domestic producers of mopeds, domestic production will increase by: A) 100,000 units. B) 600,000 units. C) 700,000 units. D) 1,200,000 units. If there is initially free trade, and then a $50 per unit subsidy is given to the domestic producers of mopeds, domestic production will increase by:


A) 100,000 units.
B) 600,000 units.
C) 700,000 units.
D) 1,200,000 units.

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