When a country exports a good,the country's producer surplus ________,consumer surplus ________,and the country ________ from the trade.

Question

Quizplus · Accepted Answer

When a country exports a good, the producer surplus increases because they are able to sell the good at a higher price in the international market. Consumer surplus decreases because domestic consumers are paying a higher price for the same good that is now being exported. However, the country gains from the trade as the increase in producer surplus exceeds the decrease in consumer surplus, resulting in a net gain for the country.

When a Country Exports a Good,the Country's Producer Surplus ________,Consumer