When a nation imports a good or service,the nation's consumer surplus ________,its producer surplus ________,and its total surplus ________.

Question

Quizplus · Accepted Answer

When a nation imports a good or service, the nation's consumer surplus increases because consumers have access to more goods or services, often at lower prices. Producer surplus decreases because domestic producers face competition from imported goods, which can lower their market share and prices. Total surplus increases because the gains to consumers from lower prices and increased variety typically outweigh the losses to producers.

When a Nation Imports a Good or Service,the Nation's Consumer