-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P_W.If there is a policy change such that imports are prohibited,the price becomes P_N.U.S.producers are better off if imports are __________; specifically,their producers' surplus changes by area __________.

Question

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P<sub>W</sub>.If there is a policy change such that imports are prohibited,the price becomes P<sub>N</sub>.U.S.producers are better off if imports are __________; specifically,their producers' surplus changes by area __________. A) permitted; P<sub>W</sub>DE B) permitted; P<sub>N</sub> BDP<sub>W</sub> C) prohibited; BDC D) prohibited; P<sub>N</sub>BDP<sub>W</sub>

Quizplus · Accepted Answer

The Answer of -Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P_W.If there is a policy change such that imports are prohibited,the price becomes P_N.U.S.producers are better off if imports are __________; specifically,their producers' surplus changes by area __________. A) permitted; P_WDE B) permitted; P_N BDP_W C) prohibited; BDC D) prohibited; P_NBDP_W