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Question 121

Multiple Choice

Use the following to answer questions:
Figure: The Domestic Supply and Demand for SUVs in Canada Use the following to answer questions: Figure: The Domestic Supply and Demand for SUVs in Canada   -(Figure: The Domestic Supply and Demand for SUVs in Canada) Use Figure: The Domestic Supply and Demand for SUVs in Canada.Suppose that the world price equals $50 000 and there is free trade.In Canada,consumer surplus would _____ and producer surplus would _____. A)  increase;decrease B)  increase;increase C)  decrease;decrease D)  decrease;increase
-(Figure: The Domestic Supply and Demand for SUVs in Canada) Use Figure: The Domestic Supply and Demand for SUVs in Canada.Suppose that the world price equals $50 000 and there is free trade.In Canada,consumer surplus would _____ and producer surplus would _____.


A) increase;decrease
B) increase;increase
C) decrease;decrease
D) decrease;increase

Correct Answer:

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