If Belgium exports chocolate to the rest of the world, then Belgian chocolate producers benefit from higher producer surplus, Belgian chocolate consumers are worse off because of lower consumer surplus, and total surplus in Belgium increases because of the exports of chocolate.

Question

Quizplus · Accepted Answer

Exporting chocolate allows Belgian producers to sell more, increasing their producer surplus due to higher prices and sales volume. However, domestic consumers face higher prices, reducing their consumer surplus. The overall effect of exports is an increase in total surplus in Belgium, as the gains from increased producer surplus outweigh the loss in consumer surplus, benefiting the economy overall.

If Belgium Exports Chocolate to the Rest of the World