When a country imports a good,the ________ in consumer surplus is ________ the ________ in producer surplus.
A) decrease; larger than; increase
B) decrease; smaller than; increase
C) increase; smaller than; decrease
D) increase; equal to; decrease
E) increase; larger than; decrease

Question

Quizplus · Accepted Answer

When a country imports a good, the increase in consumer surplus is larger than the decrease in producer surplus because consumers benefit from lower prices and increased variety, while producers face more competition.

When a Country Imports a Good,the ________ in Consumer Surplus