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:

Acquisition

The process of one company purchasing most or all of another company's shares to gain control of that company.

Assumes Obligations

The act of taking on responsibilities, duties, or commitments, often legally or contractually.

Employee-Owned Corporation

A business structure where employees hold a significant portion of the company's shares, contributing to decision-making processes.

Multi-National

Corporations or companies that operate in multiple countries outside of their headquarters or origin country.