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(Figure: the Market for Apple AirPods) Use Figure: the Market

Question 168

Multiple Choice

(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.
(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


A) increases; decreases
B) increases; increases
C) decreases; increases
D) decreases; decreases

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