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The Graph Shown Demonstrates the Domestic Demand and Supply for a Good

Question 135

Multiple Choice

The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good. 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. 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.

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