Figure 9-7

-Refer to Figure 9-7.If trade in shoes is allowed in Korea,what will happen to consumer surplus and producer surplus

Question

Figure 9-7
 
-Refer to Figure 9-7.If trade in shoes is allowed in Korea,what will happen to consumer surplus and producer surplus

Quizplus · Accepted Answer

Allowing trade in shoes in Korea will increase competition, leading to lower prices for consumers, increasing consumer surplus. At the same time, producers in Korea may face competition from cheaper foreign shoes, leading to a decrease in producer surplus. Therefore, consumer surplus will increase, and producer surplus will decrease.

Figure 9-7 -Refer to Figure 9-7.If Trade in Shoes Is Allowed in Shoes