Multiple Choice
The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In the figure above, international trade ________ producer surplus in the United States by ________.
A) decreases; $2.88 billion
B) decreases; $1.92 billion
C) increases; $4.8 billion
D) increases; $3.6 billion
Correct Answer:
Verified
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