Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland.
-Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then
A)producer surplus will be smaller than it would be if Isoland banned trade.
B)consumer surplus will be smaller than it would be if Isoland banned trade.
C)the domestic quantity of peaches demanded will exceed the domestic quantity of peaches supplied.
D)Isoland will be an importer of peaches.

Question

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland. 
-Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then
A)producer surplus will be smaller than it would be if Isoland banned trade. 
B)consumer surplus will be smaller than it would be if Isoland banned trade. 
C)the domestic quantity of peaches demanded will exceed the domestic quantity of peaches supplied. 
D)Isoland will be an importer of peaches.

Quizplus · Accepted Answer

The Answer of Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland. 
-Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then
A)producer surplus will be smaller than it would be if Isoland banned trade. 
B)consumer surplus will be smaller than it would be if Isoland banned trade. 
C)the domestic quantity of peaches demanded will exceed the domestic quantity of peaches supplied. 
D)Isoland will be an importer of peaches.