When a nation exports a good,its ________ surplus decreases and its ________ surplus increases.
A) consumer; producer
B) consumer; consumer
C) producer; producer
D) producer; consumer
E) total; consumer

Question

Quizplus · Accepted Answer

When a nation exports a good, its consumer surplus decreases because domestic consumers now have to pay a higher price due to some of the goods being sold abroad. On the other hand, its producer surplus increases because producers can sell their goods at a higher price on the international market, leading to higher profits.

When a Nation Exports a Good,its ________ Surplus Decreases and Its