The Figure Above Shows the Market for Helicopters in the United

question 25

Multiple Choice

The figure above shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In the figure above, international trade _______ consumer surplus in the United States by _______.

• A) decreases; $1.92 billion
• B) increases; $4.8 billion
• C) increases; $2.88 billion
• D) decreases; $2.88 billion

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Definitions:

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A field in a database or form that allows users to enter or view remarks or explanations.

Hedge

An investment strategy used to reduce the risk of adverse price movements in an asset.

Financial Risk

The possibility of losing money on an investment or business venture, including the risk of not achieving expected financial returns.

Mitigate

To make less severe, serious, or painful; often used in the context of reducing risk or harm.