A Ban on Imported Avocados Would Result In

question 65

Multiple Choice

A ban on imported avocados would result in:

• A)an increase in total surplus because domestic production will increase.
• B)no change in total surplus because the reduction in consumer surplus will offset the increase in producer surplus.
• C)a reduction in total surplus because a deadweight loss is created.
• D)it is impossible to say what will happen to total surplus.

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