The Graph Shown Demonstrates the Domestic Demand and Supply for a Good

question 53

Multiple Choice

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy were to open to trade, which of the following would not occur?

• A)Surplus would increase overall.
• B)Producer surplus would decrease.
• C)Surplus would transfer from producers to consumers.
• D)The areas of C + E + F + G would become deadweight loss.

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