Refer to the Figure Below to Answer the Following Questions

question 28

Multiple Choice

Refer to the figure below to answer the following questions.

Figure 7.2.1
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In Figure 7.2.1, international trade ________ total surplus in Canada by ________.

• A)increases; $128 million
• B)decreases; $192 million
• C)increases; $320 million
• D)decreases; $256 million
• E)decreases; $128 million

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