During the First 6 Months of 2008, the United States

Multiple Choice

During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. How is the gain from imports distributed between consumers and domestic producers?

A) U.S. producer surplus shrinks.
B) U.S. consumer surplus increases.
C) Total U.S. surplus increases.
D) All the above answers are correct.