Figure 9-17
-Refer to Figure 9-17.When the country moves from no trade to free trade,consumer surplus
A)increases by $1,200 and producer surplus increases by $600.
B)increases by $1,200 and producer surplus decreases by $600.
C)decreases by $1,350 and producer surplus increases by $450.
D)decreases by $1,350 and producer surplus decreases by $450.

Question

Figure 9-17 
-Refer to Figure 9-17.When the country moves from no trade to free trade,consumer surplus
A)increases by $1,200 and producer surplus increases by $600. 
B)increases by $1,200 and producer surplus decreases by $600. 
C)decreases by $1,350 and producer surplus increases by $450. 
D)decreases by $1,350 and producer surplus decreases by $450.

Quizplus · Accepted Answer

When a country moves from no trade to free trade, consumer surplus typically increases due to access to cheaper goods, while producer surplus decreases as domestic producers face competition from imports.

Figure 9-17 -Refer to Figure 9-17.When the Country Moves from No Trade