The figure below shows the demand (D) and supply (S) curves of corn syrups.Figure 21.3

-The trade-creation effect refers to:
A) the outcome of a preferential trade agreement that reduces economic efficiency by shifting production to a higher-cost producer.
B) the effect of an increase in the quantity of imports relative to the effect of a tariff applicable to all imports.
C) the outcome of a preferential trade agreement that allows a country to obtain goods at a lower cost than is available at home.
D) the effect of a diversion of production to a country that has comparative advantage due to a free trade agreement.
E) the effect of a decrease in the quantity of exports relative to the effect of a subsidy applicable to all exports.
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Q63: The figure below shows the demand (D)
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Q71: The figure below shows the demand (D)
Q72: The figure below shows the demand (D)
Q73: The figure below shows the demand (D)
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