Assume that the country Cote d'Ivoire has a comparative advantage on global "dance moves" due to the the traditional Zaouli music and dance. Assume that demand and supply for "dance moves" in Cote d'Ivoire is given by the following equations:
P d = 600 − 3 Q d P s = 2 Q s
You can also assume that world price for "dance moves" is given by P w = 300. Now assume that an export subsidy of $60 per unit is put into place. What will the amount of exports be after the subsidy is put into place?
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