Refer to the Figure Below to Answer the Following Questions

question 83

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 ________ total surplus in Canada by ________.

• A)decreases; $2.56 billion
• B)increases; $4.8 billion
• C)decreases; $3.6 billion
• D)decreases; $1.92 billion
• E)increases; $1.92 billion

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Definitions:

Square Root

A value that, when multiplied by itself, gives the original number, indicating the root of a number squared.

Unbiased Estimate

A statistical estimate that is equally likely to be above or below the true population parameter, showing no systematic error.

Variance

A measure of variability that describes the average of the squared differences from the mean for a set of data.