A country opens up to trade and becomes an exporter of a good.Consumer surplus ________,producer surplus ________,and total surplus ________.

Question

Quizplus · Accepted Answer

When a country becomes an exporter, domestic producers benefit from higher prices and increased sales, leading to increased producer surplus. However, domestic consumers face higher prices, reducing consumer surplus. Overall, total surplus increases due to gains from trade.

A Country Opens Up to Trade and Becomes an Exporter