The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above, international trade ________ producer surplus in the United States by ________.

Question

Quizplus · Accepted Answer

International trade typically decreases producer surplus in a country due to increased competition from foreign producers, which can lead to lower prices and reduced market share for domestic producers. In this case, the decrease is quantified as $192 million.

The Figure Shows the Market for Shirts in the United