Multiple Choice
-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is PW.If there is a policy change such that imports are prohibited,the price becomes PN, U.S.consumers are worse off if imports are __________; specifically,their consumers' surplus changes by area __________.
A) prohibited; PWABD
B) permitted; PWDE
C) prohibited; PNBCPW
D) permitted; PN BDPW
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
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