The diagram below shows the domestic demand and supply curves for cotton towels in Canada. The prevailing world price of cotton towels is PW. Assume that all cotton towels are identical.
FIGURE 34- 3
-Refer to Figure 34- 3. If Canada has free trade in cotton towels, foreign producers' revenues from their Canadian sales will be equal to the amount
A) E + F + G + H + I.
B) E + F.
C) A + B + E + F + G.
D) G + H + I.
E) E + F + G + H + I + J.
Correct Answer:
Verified
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A)increased
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