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-(Figure: The Market for Tea in Sri Lanka) Use Figure: The Market for Tea in Sri Lanka.In autarky,the price is P₁.When the economy is opened to trade,the price rises to P_W and consumer surplus _____ to _____.

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Use the following to answer question:

-(Figure: The Market for Tea in Sri Lanka) Use Figure: The Market for Tea in Sri Lanka.In autarky,the price is P₁.When the economy is opened to trade,the price rises to P_W and consumer surplus _____ to _____.

Quizplus · Accepted Answer

When the economy opens to trade and the price rises to PW, consumer surplus falls to area F, as consumers now pay a higher price and consume less.

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