Canada can produce wine domestically,but it can also import wine if the world price is lower than the domestic price.If Canada imports wine,consumer surplus will _____ by _____ the _____ in producer surplus;total surplus will _____.

Question

Quizplus · Accepted Answer

When Canada imports wine at a lower world price, consumer surplus increases more than the decrease in producer surplus, leading to an overall increase in total surplus.

Canada Can Produce Wine Domestically,but It Can Also Import Wine