According to this statement, if free trade in corn is allowed:
A)producers' welfare will increase and consumers' welfare will decrease
B)producers' welfare will decrease and consumers' welfare will increase
C)producers' and consumers' welfare will be unaffected
D)producers' welfare will increase and consumers will suffer a deadweight loss

Question

Quizplus · Accepted Answer

If free trade in corn is allowed, the price of corn will decrease due to increased competition from foreign producers. This will result in a decrease in the welfare of domestic corn producers who will earn less revenue. However, consumers will benefit from lower prices and have increased welfare. Therefore, producers' welfare will decrease, and consumers' welfare will increase.

According to This Statement, If Free Trade in Corn Is