Which of the following is true?
i.When the world price of a good is lower than the price that balances domestic supply and demand,a country gains from exporting the good.
ii.Compared to a no-trade situation,in a market with imports,consumer surplus is larger.
iii.Quotas raise the domestic price of imported goods.

Question

Quizplus · Accepted Answer

ii. When a country imports goods, consumers have access to a larger variety of goods often at lower prices, which increases consumer surplus. iii. Quotas limit the quantity of goods that can be imported, reducing supply and causing the domestic price of these goods to rise.

Which of the Following Is True