Suppose the Home country is a small open economy, which faces a perfectly elastic Foreign Import Demand function (MD*) at the world price PW, and which exports a good under free trade. Now suppose the Home country imposes an export subsidy s dollars per unit of the good exported. Using diagrams for the Home market and the world market, show the impact of the Home export subsidy s. What impact does the export subsidy have on the welfare of Home producers, consumers and the Home government? Does overall welfare in Home increase or decrease as a result of the export subsidy? Explain