-According to the graph, imports: A) have caused the price to fall from P to P_w. B) have caused consumer surplus to rise. C) have caused producer surplus to fall. D) all of the above E) None of the above

Question

Quizplus · Accepted Answer

Imports typically lead to a decrease in prices from a domestic level to a world level, increase consumer surplus due to lower prices and more choices, and decrease producer surplus as domestic producers face tougher competition from imported goods, leading to all of the above effects.

-According to the Graph, Imports