Figure 9-14.On the diagram below,Q represents the quantity of crude oil and P represents the price of crude oil.
-Refer to Figure 9-14.When the country for which the figure is drawn allows international trade in crude oil,
A)consumer surplus for domestic crude-oil consumers decreases.
B)the demand for crude oil by domestic crude-oil consumers decreases.
C)the losses of the domestic losers outweigh the gains of the domestic winners.
D)domestic crude-oil producers sell less crude oil.

Question

Figure 9-14.On the diagram below,Q represents the quantity of crude oil and P represents the price of crude oil. 
-Refer to Figure 9-14.When the country for which the figure is drawn allows international trade in crude oil,
A)consumer surplus for domestic crude-oil consumers decreases. 
B)the demand for crude oil by domestic crude-oil consumers decreases. 
C)the losses of the domestic losers outweigh the gains of the domestic winners. 
D)domestic crude-oil producers sell less crude oil.

Quizplus · Accepted Answer

When a country allows international trade, the price of crude oil typically decreases due to increased supply from international markets. This leads to a decrease in consumer surplus for domestic crude-oil consumers as they pay less for the same quantity, but the overall consumer surplus actually increases.