When a nation exports a good,its ________ surplus decreases,and when it imports a good,its ________ surplus decreases.
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, the domestic price typically rises to match the world price, benefiting producers and reducing consumer surplus. Conversely, when a nation imports a good, the domestic price falls to the world price, benefiting consumers and reducing producer surplus.

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