The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
If the economy opens itself to free trade, producer surplus will:
A) decrease to area I.
B) decrease to areas E + I.
C) increase to areas E + I.
D) increase to areas A + B + C + D + E + F + G + H.
Correct Answer:
Verified
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