Which of the following is true?
i.When the world price of a good is lower than the price that balances domestic supply and demand,a country gains from exporting the good.
ii.Compared to a no-trade situation,in a market with imports,consumer surplus is larger.
iii.Quotas raise the domestic price of imported goods.
A) Only i
B) Only ii
C) Only iii
D) i and ii
E) ii and iii

Question

Quizplus · Accepted Answer

When imports are allowed, consumer surplus increases because consumers can buy goods at a lower world price. Quotas restrict the quantity of imports, leading to higher domestic prices for those goods.

Which of the Following Is True