(Figure: Market for Pants) Suppose that the world price of a pair of pants is $40. According to the figure, international trade will lead to _____ in the domestic producer surplus and _____ in the domestic consumer surplus.

Question

(Figure: Market for Pants) Suppose that the world price of a pair of pants is $40. According to the figure, international trade will lead to _____ in the domestic producer surplus and _____ in the domestic consumer surplus.
(Figure: Market for Pants) Suppose that the world price of a pair of pants is $40. According to the figure, international trade will lead to _____ in the domestic producer surplus and _____ in the domestic consumer surplus. A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease

Quizplus · Accepted Answer

The Answer of (Figure: Market for Pants) Suppose that the world price of a pair of pants is $40. According to the figure, international trade will lead to _____ in the domestic producer surplus and _____ in the domestic consumer surplus.

(Figure: Market for Pants) Suppose That the World Price of a Pair