Figure 9-18

question 210

Multiple Choice

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland.
-Refer to Figure 9-18.Suppose Isoland changes from a no-trade policy to a policy that allows international trade.If the world price of peaches is $5,then the policy change results in

• A)a decrease in consumer surplus.
• B)an increase in producer surplus.
• C)an increase in total surplus.
• D)All of the above are correct.

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