(Figure: The Market for Apple AirPods) Use Figure: The Market for Apple AirPods. Assume that Sd represents the domestic supply curve and that Dd represents the domestic demand curve. If the world price equals $120, and there is free trade, domestic consumer surplus _____ and domestic producer surplus _____ compared with the situation without trade.
A) increases; decreases
B) increases; increases
C) decreases; increases
D) decreases; decreases
Correct Answer:
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