When a Country Allows Trade and Becomes an Importer of a Good

question 18

Multiple Choice

When a country allows trade and becomes an importer of a good,

• A)consumer surplus and producer surplus both increase.
• B)consumer surplus and producer surplus both decrease.
• C)consumer surplus increases and producer surplus decreases.
• D)consumer surplus decreases and producer surplus increases.

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Definitions:

Liable

Legally responsible or obligated to provide compensation for harm, loss, or damage caused.

Irrevocable

Unable to be changed, reversed, or recovered; final.

Competing

Engaging in a rivalry or competition with others in an attempt to achieve a specific goal, often referring to businesses vying in the same market or industry.

Terminated

Refers to the ending or discontinuation of something, such as employment, a contract, or a project.