Refer to the Figure Below to Answer the Following Question

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. With 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