Imports ________ consumer surplus,________ producer surplus,and ________ total surplus.

Question

Quizplus · Accepted Answer

Imports increase consumer surplus because consumers have access to a wider variety of goods at lower prices. Imports decrease producer surplus because domestic producers face tougher competition from foreign producers, which can lower their market share and prices. However, imports increase total surplus because the gains from increased consumer surplus outweigh the losses in producer surplus, leading to a net increase in economic welfare.

Imports ________ Consumer Surplus,________ Producer Surplus,and ________ Total Surplus

Imports Consumer Surplus, Producer Surplus,and Total Surplus