Use the Following to Answer Question

question 75

Multiple Choice

Use the following to answer question:
-(Figure: The Market for Tea in Sri Lanka) Use Figure: The Market for Tea in Sri Lanka.In autarky,the price is P₁.When the economy is opened to trade,the price rises to P_W and consumer surplus _____ to _____.

• A)falls;F
• B)falls;F + G
• C)rises;F + G + H + I
• D)rises;G + H + I

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Definitions:

Blue-money Income

Informal term possibly referring to income earned in a foreign or stronger currency, or income derived from questionable or illegal activities.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which each unit is identical to every other unit.

Coconuts

Tropical fruits or nuts known for their water, milk, oil, and meat, and often used as examples in economic models.

Fish

Aquatic vertebrates that are typically covered with scales and equipped with fins for swimming.