Exhibit 33-2 ​

question 131

Multiple Choice

Exhibit 33-2
​

-Refer to Exhibit 33-2. The U.S. demand and supply for a good are shown. Under a policy of free trade, where imports are permitted, the world price is P_W. If there is a policy change such that imports are prohibited, the price becomes P_N, consumers' surplus equals __________ and producers' surplus equals __________.

• A)P_NAB; P_NBE
• B)BCD; P_NDE
• C)P_NAD; BCD
• D)P_NAD; P_WBDE
• E)none of the above

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