Refer to the Figure Below to Answer the Following Question

Multiple Choice

Refer to the figure below to answer the following question.

Figure 7.2.4
-Refer to Figure 7.2.4. The graph shows the demand for shoes in Brazil, DB, the supply of shoes produced in Brazil, SB, and the market equilibrium in Brazil when it does not trade internationally. If the world price of a pair of shoes is $20 and Brazil opens up and trades internationally, producer surplus in Brazil ________ and consumer surplus in Brazil ________.

A) increases by area C + D; decreases by area C
B) increases by area C; decreases by area C and a deadweight loss equal to area D arises
C) increases by area D; decreases by area D
D) decreases by area C; increases by area C + D
E) decreases by area C + D; increases by area C