(Figure: The Home Market) With free trade, the consumer surplus is
_________ than in the case of notrade domestic monopoly.

Question

(Figure: The Home Market) With free trade, the consumer surplus is
_________ than in the case of no­trade domestic monopoly.

Quizplus · Accepted Answer

With free trade, the domestic monopoly faces competition from foreign producers, leading to a decrease in the price and an increase in the quantity of the good traded in the market. Therefore, the consumer surplus increases under free trade compared to the case of no-trade domestic monopoly.

(Figure: the Home Market) with Free Trade, the Consumer Surplus