Graph 9-1
This graph refers to the market for beef in Japan.

-According to Graph 9-1, if trade in beef is allowed, Japanese:

Question

Graph 9-1
This graph refers to the market for beef in Japan.
 
-According to Graph 9-1, if trade in beef is allowed, Japanese:

Quizplus · Accepted Answer

As shown in the graph, allowing trade in beef will shift the supply curve to the right, resulting in a decrease in domestic price and an increase in quantity demanded. This will lead to an increase in consumer surplus due to the lower price and greater quantity available. However, it will also lead to a decrease in producer surplus as domestic producers must compete with cheaper imported beef. Therefore, the correct choice is A, where consumer surplus will increase and producer surplus will decrease.

Graph 9-1 This Graph Refers to the Market for Beef in Japan