In a market that moves from a situation of no trade to a situation where a good is exported,the price of the good ________,the quantity produced by the domestic industry ________,and producer surplus ________.
A)rises;increases;increases
B)falls;decreases;decreases
C)does not change;increases;increases
D)does not change;decreases;decreases
E)rises;increases;decreases

Question

Quizplus · Accepted Answer

When a good is exported, the domestic price rises to the world price level, leading to an increase in domestic production and an increase in producer surplus due to higher prices and larger market access.

In a Market That Moves from a Situation of No