Refer to the Figure Below to Answer the Following Question

question 69

Multiple Choice

Refer to the figure below to answer the following question.

Figure 7.2.4
-Refer to Figure 7.2.4. The graph shows the demand for shoes in Brazil, DB, the supply of shoes produced in Brazil, SB, and the market equilibrium in Brazil when it does not trade internationally. If the world price of a pair of shoes is $20 and Brazil opens up and trades internationally, producer surplus in Brazil ________ and consumer surplus in Brazil ________.

• A)increases by area C + D; decreases by area C
• B)increases by area C; decreases by area C and a deadweight loss equal to area D arises
• C)increases by area D; decreases by area D
• D)decreases by area C; increases by area C + D
• E)decreases by area C + D; increases by area C

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Definitions:

Psychoanalytic

Pertains to the theory and therapeutic approach developed by Sigmund Freud, focusing on unconscious processes influencing behavior and personality.

Higher Need

Refers to the more complex, growth-oriented aspects of human motivation, often associated with fulfilling potential and achieving self-actualization.

Failure

The condition or fact of not achieving the desired end or ends; the opposite of success.

Content

Pertains to the substance or material dealt within a speech, text, work of art, or thought, determining its meaning or significance.