Refer to the Figure Below to Answer the Following Questions

question 78

Multiple Choice

Refer to the figure below to answer the following questions.

Figure 7.2.2
The figure shows the market for helicopters in Canada, where D is the domestic demand curve and S is the domestic supply curve. Canada trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In Figure 7.2.2, international trade ________ producer surplus in Canada by ________.

• A)decreases; $2.88 billion
• B)decreases; $1.92 billion
• C)increases; $4.8 billion
• D)increases; $3.6 billion
• E)decreases; $4.8 billion

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Definitions:

Budget Line

An illustrative chart depicting every feasible mix of two products that someone can buy, considering their financial resources and the items' pricing.

Music Downloads

The process of transferring music files from the internet to a computer or mobile device, enabling the user to listen to the music offline.

Streamed Movies

Films that are delivered and watched over the Internet without the need for downloading the entire file, allowing immediate viewing.

Income

The amount of money received over a period of time, either as payment for work, goods, or services, or as profit on investment.