After a Certain Nation Changed Its Policy from One That

question 57

Multiple Choice

After a certain nation changed its policy from one that banned international trade in wheat to one that allowed international trade in wheat,the nation began importing wheat.As a result,total surplus in the wheat market increased by $10 million.Which of the following changes could have occurred as well?

• A)The price of wheat in that nation increased with the adoption of the new policy.
• B)The domestic quantity of wheat supplied increased with the adoption of the new policy.
• C)Consumer surplus in the wheat market increased by $7 million and producer surplus in the wheat market increased by $3 million.
• D)Consumer surplus in the wheat market increased by $15 million and producer surplus in the wheat market decreased by $5 million.

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Definitions:

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