Refer to the Figure Below to Answer the Following Questions

question 124

Multiple Choice

Refer to the figure below to answer the following questions. Figure 7.2.2
The figure shows the market for helicopters in Canada,where D is the domestic demand curve and S is the domestic supply curve.The world price is $36 million per helicopter.
-In Figure 7.2.2,if the economy moves from no trade to international trade,producer surplus in Canada ________ by ________.

• A)decreases;$2.88 billion
• B)decreases;$1.92 billion
• C)increases;$4.8 billion
• D)increases;$3.6 billion
• E)decreases;$4.8 billion

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Definitions:

Doghouses

Small shelters provided for dogs, typically placed outdoors, offering protection and a comfortable space for pets.

Dishwashers

Appliances designed for automatically cleaning dishware and cutlery.

Markets

Places or systems where buyers and sellers engage in exchange of goods, services, or financial instruments.

Households

Individuals or groups of people living together who make joint decisions on the consumption of goods and services.