Suppose that Home is a larger exporter of wheat. Assume that the free-trade world price s $100 per… Show more Suppose that Home is a larger exporter of wheat. Assume that the free-trade world price s $100 per ton and that the Home government provides that domestic producer with an export subsidy in the amount of $40 per ton. Because of the export subsidy, the local price increases to $120, while the foreign mart price declines to $80 per ton. Use the following figure to answer these questions. • Show less