A country currently exports 1 million tons of lumber to the rest of the world. If the government were to impose an export subsidy on lumber, which of the following correctly explains the expected result?

a
The subsidy will decrease exports of lumber because it will effectively raise lumber prices for both domestic consumers and domestic producers.
b
The subsidy will increase exports of lumber because it will effectively raise lumber prices for both domestic consumers and domestic producers.
c
The subsidy will decrease exports of lumber because it will effectively lower lumber prices for consumers and raise them for producers.
d
The subsidy will increase exports of lumber because it will effectively lower lumber prices for consumers and raise them for