Refer to the figure below to answer the following questions.

Figure 7.2.1
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In Figure 7.2.1, international trade ________ producer surplus in Canada by ________.
A)increases; $320 million
B)decreases; $192 million
C)increases; $192 million
D)decreases; $320 million
E)decreases; $256 million

Question

Refer to the figure below to answer the following questions.
  
Figure 7.2.1
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In Figure 7.2.1, international trade ________ producer surplus in Canada by ________.
A)increases; $320 million 
B)decreases; $192 million 
C)increases; $192 million 
D)decreases; $320 million 
E)decreases; $256 million

Quizplus · Accepted Answer

International trade decreases producer surplus in Canada by $192 million, as indicated by the context of the question and the options provided.

Refer to the Figure Below to Answer the Following Questions