The Following Figure Shows the Demand and Supply for a Commodity

question 23

Multiple Choice

The following figure shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market.
In Figure 10-3,for the rest of the world:

• A)the gain in producer surplus equals the gain in consumer surplus.
• B)producer surplus increases while consumer surplus is unchanged.
• C)the gain in consumer surplus is greater than the gain in producer surplus.
• D)there are no changes in consumer or producer surplus after trade.

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