Use the Following to Answer Question

question 75

Multiple Choice

Use the following to answer question:
-(Figure: The Market for Tea in Sri Lanka) Use Figure: The Market for Tea in Sri Lanka.In autarky,the price is P₁.When the economy is opened to trade,the price rises to P_W and consumer surplus _____ to _____.

• A)falls;F
• B)falls;F + G
• C)rises;F + G + H + I
• D)rises;G + H + I

---

Definitions:

Average Costs

The total cost of production divided by the number of goods produced, often used to assess cost efficiency.

Government Franchises

Government franchises are rights or licenses granted by the government to entities, allowing them to operate specific services or activities under regulation.

Perfect Knowledge

A theoretical concept where all consumers and producers have complete and instantaneous information about all aspects of the market.

Differentiation

Differentiation is a strategy used by businesses to distinguish their products or services from those of competitors, often through unique features, quality, or branding.