Australian producer surplus _______ when Australia imports a good and Australian producer surplus _______ when Australia exports a good.

Question

Quizplus · Accepted Answer

Australian producer surplus decreases when Australia imports a good because domestic producers face competition from cheaper or better imports, reducing their market share and profits. Producer surplus increases when Australia exports a good because producers gain access to larger markets, potentially selling more at higher prices than in the domestic market.

Australian Producer Surplus _______ When Australia Imports a Good and Australian