-When a country imports a good, the ________ in consumer surplus is ________ the ________ in producer surplus.
A) decrease; larger than; increase
B) increase; smaller than; decrease
C) increase; larger than; decrease
D) increase; equal to; decrease
E) decrease; smaller than; increase

Question

-When a country imports a good, the ________ in consumer surplus is ________ the ________ in producer surplus.
A) decrease; larger than; increase 
B) increase; smaller than; decrease 
C) increase; larger than; decrease 
D) increase; equal to; decrease 
E) decrease; smaller than; increase

Quizplus · Accepted Answer

When a country imports a good, consumer surplus increases because consumers have access to more goods at lower prices. Producer surplus decreases because domestic producers face competition from cheaper imported goods. The increase in consumer surplus is typically larger than the decrease in producer surplus, reflecting the overall gain from trade.

-When a Country Imports a Good, the ________ in Consumer