Consider a market in a small country with a domestic demand curve of P = 28 - q and a domestic supply curve of P = 3q.The world price is $9 per unit.If the country opens itself up to international trade:

Question

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Consumer surplus increases by $143 when the country opens itself up to international trade. This is because the world price is lower than the domestic price, so consumers can buy more goods at a lower price.

Consider a Market in a Small Country with a Domestic