The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above, international trade ________ total surplus in the United States by ________.

Question

Quizplus · Accepted Answer

International trade increases total surplus by allowing countries to specialize and trade, leading to a net gain in economic welfare. The figure indicates an increase of $128 million.

The Figure Shows the Market for Shirts in the United