-Refer to Exhibit 34-2

question 23

Multiple Choice

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,where imports are permitted,the world price is P_W.If there is a policy change such that imports are prohibited,the price becomes P_N,consumers' surplus equals __________ and producers' surplus equals __________.

• A) P_NAB; P_NBE
• B) BCD; P_NDE
• C) P_NAD; BCD
• D) P_NAD; P_WBDE
• E) none of the above

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Definitions:

Duress

Unlawful pressure brought to bear on a person, causing the person to perform an act that he or she would not otherwise perform (or refrain from doing something that he or she would otherwise do).

Entire Transaction

The complete process or series of associated dealings, typically concerning a business or financial agreement.

Undue Influence

An act of unfairly persuading someone to make a decision that benefits another at their expense.

Confidential Relationship

A bond between parties that necessitates the trust to not disclose classified or private information.