Question

suppose ghana imports apples from south africa. the world price for apples is $2 per pound. however, the domestic price for apples in ghana is $3 per pound. ghana is a small country and does not influence the world price of apples. however, the government of ghana wants consumers to pay a price for apples that is exactly equal to the world price. what pricing policy can the government implement so that domestic consumers pay exactly $2 per pound for apples? group of answer choices offer a $1 subsidy to each consumer for every pound of apples purchased the government imports apples from south africa at $2 per pound and sells them directly to consumers at $2 per pound. both a and b none of the above

Answer 1

The government of Ghana can implement a pricing policy to ensure that domestic consumers pay exactly $2 per pound for apples by offering a $1 subsidy per pound purchased or by importing apples from South Africa and selling them at $2 per pound.

Step-by-step explanation:

The government of Ghana can implement a pricing policy to ensure that domestic consumers pay exactly $2 per pound for apples. One option is to offer a $1 subsidy to each consumer for every pound of apples purchased. This subsidy will effectively reduce the price paid by consumers from $3 to $2 per pound, making it equal to the world price.

Another option is for the government to import apples from South Africa at $2 per pound and sell them directly to consumers at the same price. Both of these options will enable domestic consumers in Ghana to pay exactly $2 per pound for apples.