When a nation exports a good,its ________ surplus increases,and when it imports a good,its ________ surplus increases.
A) consumer; total
B) consumer; consumer
C) producer; producer
D) producer; consumer
E) total; consumer

Question

Quizplus · Accepted Answer

When a nation exports a good, its producer surplus increases because the producers of the exported good receive a higher price for their product in the international market than they would in the domestic market. When a nation imports a good, its consumer surplus increases because the consumers of the imported good pay a lower price for their product in the domestic market than they would in the international market.

When a Nation Exports a Good,its ________ Surplus Increases,and When