When a country abandons a no-trade policy, adopts a free-trade policy, and becom
ID: 1095385 • Letter: W
Question
When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,
producer surplus decreases and total surplus increases in the market for that good.
producer surplus increases and total surplus increases in the market for that good.
producer surplus increases and total surplus decreases in the market for that good.
producer surplus decreases and total surplus decreases in the market for that good.
a.producer surplus decreases and total surplus increases in the market for that good.
b.producer surplus increases and total surplus increases in the market for that good.
c.producer surplus increases and total surplus decreases in the market for that good.
d.producer surplus decreases and total surplus decreases in the market for that good.
Explanation / Answer
producer surplus increases and total surplus increases in the market for that good.
b.producer surplus increases and total surplus increases in the market for that good.