Multiple Choice
Refer to the figure below to answer the following question. Figure 7.2.3
-Refer to Figure 7.2.3.The graph shows the market for shoes in Canada.The world price of a pair of shoes is $20.Moving from a situation of no international trade to a situation of free international trade,Canadian consumer surplus ________ and Canadian producer surplus ________.
A) increases by area A + B;decreases by area B
B) increases by area B;decreases by area B
C) increases by area A;decreases by area B
D) decreases by area A + B;increases by area B
E) decreases by area B;increases by area A
Correct Answer:

Verified
Correct Answer:
Verified
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