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Suppose Iceland Goes from Being an Isolated Country to Being

Question 54

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Suppose Iceland goes from being an isolated country to being an importer of coats.As a result,


A) consumer surplus increases for consumers of coats in Iceland.
B) producer surplus increases for producers of coats in Iceland.
C) total surplus remains unchanged in the coat market in Iceland.
D) it is reasonable to infer that Iceland has a comparative advantage over other countries in coat production.

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