A small country has a comparative advantage in the production of pencils. The government establishes an export subsidy for pencils to promote economic growth. Which of the following will bethe most likely result of this policy?

A.The increase in the domestic producer surplus will exceed the sum of the subsidy and the decrease in the domestic consumer surplus.

B.As new domestic producers enter the pencils market,supply will increase and domestic prices will decline.

C.Although domestic producers will receive a net benefit,the policy will give rise to inefficiencies