Suppose that the U.S.has a comparative advantage in the production of spreadsheet software.As a result of opening up the market to international trade,
A)U.S.citizens benefit from lower software prices,increasing consumer surplus in the market.
B)U.S.software producers are harmed,since the price that these producers receive will decline as the price falls to the world price.
C)total surplus in this market will remain unchanged,as the decline in benefits received by software producers exactly balances the increase in benefits received by US software consumers.
D)U.S.producers benefit from higher software prices,increasing producer surplus in the market.

Question

Suppose that the U.S.has a comparative advantage in the production of spreadsheet software.As a result of opening up the market to international trade,
A)​U.S.citizens benefit from lower software prices,increasing consumer surplus in the market.
B)​U.S.software producers are harmed,since the price that these producers receive will decline as the price falls to the world price.
C)​total surplus in this market will remain unchanged,as the decline in benefits received by software producers exactly balances the increase in benefits received by US software consumers.
D)​U.S.producers benefit from higher software prices,increasing producer surplus in the market.

Quizplus · Accepted Answer

The Answer of Suppose that the U.S.has a comparative advantage in the production of spreadsheet software.As a result of opening up the market to international trade,
A)​U.S.citizens benefit from lower software prices,increasing consumer surplus in the market.
B)​U.S.software producers are harmed,since the price that these producers receive will decline as the price falls to the world price.
C)​total surplus in this market will remain unchanged,as the decline in benefits received by software producers exactly balances the increase in benefits received by US software consumers.
D)​U.S.producers benefit from higher software prices,increasing producer surplus in the market.

Suppose That the U