(Figure: The Domestic Supply and Demand for Recreational Vehicles (RVs) in the United States) Use Figure: The Domestic Supply and Demand for Recreational Vehicles (RVs) in the United States. Suppose the world price equals $50,000, and there is free trade. In the United States, consumer surplus would _____, and producer surplus would _____.
A) increase; decrease
B) increase; increase
C) decrease; decrease
D) decrease; increase
Correct Answer:
Verified
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