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 marginal external benefit curve (MEB) of the country from the production of domestic mopeds. 
If there is initially free trade, and then a $50 per unit subsidy is given to the domestic producers of mopeds, domestic consumption of mopeds would:
A) increase by 100,000 units.
B) decrease by 200,000 units.
C) decrease by 600,000 units.
D) remain unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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