When a Country Abandons a No-Trade Policy,adopts a Free-Trade Policy,and

question 224

Multiple Choice

When a country abandons a no-trade policy,adopts a free-trade policy,and becomes an importer of a particular good,

• A)producer surplus increases and total surplus increases in the market for that good.
• B)producer surplus increases and total surplus decreases in the market for that good.
• C)producer surplus decreases and total surplus increases in the market for that good.
• D)producer surplus decreases and total surplus decreases in the market for that good.