Export Subsidy, Large Country, Exportable Product
(Figure 11.4)

The export subsidy creates a wedge of $20 between the price that foreign importers pay and the revenue per unit that exporters receive. The new world price is $88, the price paid by importers. Press the "Show New World Price" button to display the world price. The revenue per unit to the exporting firms, and the new price in the exporting country, is $108. Press the "Show Revenue Per Unit" button. Notice that the wedge fits vertically at a quantity of 110 million pipes in panel B.
Press "Continue" when you are ready to move on. The "Reset" button will clear the graph.