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:

Interval

A range of values within which a measurement or variable can fall, often used in statistics to estimate uncertainty.

Ordinal

Relating to a categorical ranking or ordering of data where the order of the values is significant, but the differences between them are not necessarily consistent or known.

Ratio

A quantitative relationship between two numbers, showing how many times the first number contains the second.

Ratio Scale

A scale of measurement that has a true zero point and equal distances between adjacent units, allowing for meaningful comparison of ratios of scale values.