When a nation exports a good,its consumer surplus ________,and its producer surplus ________.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
E) does not change; increases

Question

Quizplus · Accepted Answer

When a nation exports a good, its consumer surplus decreases because domestic consumers now face higher prices due to part of the supply being sent abroad. However, its producer surplus increases because producers can sell more goods at higher prices on the international market.

When a Nation Exports a Good,its Consumer Surplus ________,And Its