Q 106

The United States can produce wine domestically, but it can also import wine if the world price is lower than the domestic price. If the United States imports wine, consumer surplus will _____ by _____ the _____ in producer surplus; total surplus will _____. A) increase; less than; decrease; decrease B) increase; the same amount as; decrease; stay constant C) decrease; less than; increase; increase D) increase; more than; decrease; increase

Multiple Choice