Answer the Question(s)below Based Upon the Following Diagram Which Depicts

question 24

Multiple Choice

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable.

-Refer to the figure above.If A forms a customs union with C,the value of trade diversion will be

• A)$0.
• B)$10,000.
• C)$20,000.
• D)$40,000.

---

Definitions:

Surplus

Surplus is a condition where the quantity supplied of a product exceeds the quantity demanded at a specific price, often leading to decreases in price.

Price Floor

A government or regulatory-imposed minimum price that can be charged for a good or service, below which it cannot legally be sold.

Milk

A nutrient-rich liquid food produced by the mammary glands of mammals, commonly consumed by humans.

Market Equilibrium

A condition or state in which the supply of a product matches its demand, leading to a stable price.