Figure 9-4 -Refer to Figure 9-4. a Result of This Country Allowing

Multiple Choice

Figure 9-4
-Refer to Figure 9-4. A result of this country allowing international trade in crude oil is as follows:

A) The well-being of domestic crude-oil producers is now higher in that they now sell more crude oil at a higher price per barrel.
B) The effect on the well-being of domestic crude-oil consumers is unclear in that they now buy more crude oil, but at a higher price per barrel.
C) The effect on the well-being of the country is unclear in that domestic producer surplus increases, while the effect on domestic consumer surplus is unclear.
D) domestic consumers lose by more than domestic producers gain.