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The Following Figure Shows the Demand and Supply for a Commodity

Question 23

Multiple Choice

The following figure shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market. The following figure shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market.   In Figure 10-3,for the rest of the world: A) the gain in producer surplus equals the gain in consumer surplus. B) producer surplus increases while consumer surplus is unchanged. C) the gain in consumer surplus is greater than the gain in producer surplus. D) there are no changes in consumer or producer surplus after trade.
In Figure 10-3,for the rest of the world:


A) the gain in producer surplus equals the gain in consumer surplus.
B) producer surplus increases while consumer surplus is unchanged.
C) the gain in consumer surplus is greater than the gain in producer surplus.
D) there are no changes in consumer or producer surplus after trade.

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