Refer to the Figure Below to Answer the Following Questions

question 5

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. Canada trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In Figure 7.2.2, international trade ________ consumer surplus in Canada by ________.

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

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Definitions:

Co-Operative

An organization owned and operated for the benefit of those using its services, with members sharing control according to democratic principles.

Distinct Legal Entity

This term refers to a business structure that is recognized as separate from its owners, having its own rights and liabilities.

Corporation

A legal entity that is separate and distinct from its owners, recognized by law as having rights and liabilities.

General Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.