After a certain nation changed its policy from one that banned international trade in wheat to one that allowed international trade in wheat,the nation began importing wheat.As a result,total surplus in the wheat market increased by $10 million.Which of the following changes could have occurred as well?
A)The price of wheat in that nation increased with the adoption of the new policy.
B)The domestic quantity of wheat supplied increased with the adoption of the new policy.
C)Consumer surplus in the wheat market increased by $7 million and producer surplus in the wheat market increased by $3 million.
D)Consumer surplus in the wheat market increased by $15 million and producer surplus in the wheat market decreased by $5 million.

Question

Quizplus · Accepted Answer

When the nation began importing wheat, the consumer surplus increased significantly due to access to cheaper or more abundant wheat, while the producer surplus decreased because domestic producers faced competition from imports. The net effect was an increase in total surplus by $10 million.

After a Certain Nation Changed Its Policy from One That