The impact of international trade converting a country to importer.

Question

A country moves from a situation of no trade to a situation where it imports a good. Which of the following does not occur in the market for this good in the importing country? A. Deadweight loss decreases. B. Total surplus increases. C. Consumer surplus increases. D. Producer surplus decreases. E. Workers in the domestic industry lose.

Answer 1

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 9, Problem 3CQQ

To determine

The impact of international trade converting a country to importer.

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A country moves from a situation of no trade to a situation where it imports a good. Which of the following does not occur in the market for this good in the importing country? A. Deadweight loss decreases. B. Total surplus increases. C. Consumer surplus increases. D. Producer surplus decreases. E. Workers in the domestic industry lose.

Economics When a new tariff is placed on imported furniture, which of the following is expected to happen in the domestic market for furniture, all else being equal? a.Consumer surplus and producer surplus both increase. b.Consumer surplus decreases and producer surplus increases. c.Consumer surplus and producer surplus both decrease. d.Consumer surplus increases and producer surplus decreases.

During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. How is the gain from imports distributed between consumers and domestic producers? A. U.S. producer surplus shrinks. B. U.S. consumer surplus increases. C. Total U.S. surplus increases. D. All the above answers are correct.

Answer 2

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 9, Problem 3CQQ

To determine

The impact of international trade converting a country to importer.

Expert Solution & Answer

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Check out sample textbook solution

Answer 3

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 9, Problem 3CQQ

To determine

The impact of international trade converting a country to importer.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 9, Problem 3CQQ

To determine