Refer to the Figure Below to Answer the Following Question

question 19

Multiple Choice

Refer to the figure below to answer the following question.

Figure 7.2.3
-Refer to Figure 7.2.3. The graph shows the market for shoes in Canada. The world price of a pair of shoes is $20. With free international trade, Canadian consumer surplus ________ and Canadian producer surplus ________.

• A)increases by area A + B; decreases by area B
• B)increases by area B; decreases by area B
• C)increases by area A; decreases by area B
• D)decreases by area A + B; increases by area B
• E)decreases by area B; increases by area A

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Definitions:

Migrants

Individuals or groups of people who move from one place to another, often for reasons such as economic opportunities, war, or environmental factors.

American Heartland

Refers to the central geographic region of the United States, often characterized by agricultural productivity, traditional values, and a significant role in shaping American culture and politics.

Japanese Emigrate

The movement of Japanese people relocating to live outside of Japan, which has occurred for various reasons over different historical periods.

Rising Taxes

The phenomenon of increasing tax rates or amounts, often leading to public discontent or economic adjustments.