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Figure: The Market for Tea in Sri Lanka
-(Figure: The Market for Tea in Sri Lanka) Look at the figure The Market for Tea in Sri Lanka. In autarky, the price is P₁. When the economy is opened to trade, the price rises to P_W, and producer surplus _____ to _____.

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Figure: The Market for Tea in Sri Lanka

-(Figure: The Market for Tea in Sri Lanka) Look at the figure The Market for Tea in Sri Lanka. In autarky, the price is P₁. When the economy is opened to trade, the price rises to P_W, and producer surplus _____ to _____.

Quizplus · Accepted Answer

When the economy opens to trade and the price rises to PW, the producer surplus increases to the area G + H + I + J + K, as producers can sell more at a higher price.

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