Multiple Choice
Use the following to answer question:
-(Figure: The Market for Beats by Dre) Use Figure: The Market for Beats by Dre.Assume that Sd represents the domestic supply curve and Dd represents the domestic demand curve.If the world price equals $100 and there is free trade,domestic consumer surplus _____ and domestic producer surplus _____ compared with autarky.
A) increases;decreases
B) increases;increases
C) decreases;increases
D) decreases;decreases
Correct Answer:

Verified
Correct Answer:
Verified
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