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Suppose Iceland Goes from Being an Isolated Country to Being

Question 53

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Suppose Iceland goes from being an isolated country to being an exporter of coats.As a result,


A) consumer surplus increases for consumers of coats in Iceland.
B) producer surplus increases for producers of coats in Iceland.
C) total surplus remains unchanged in the coat market in Iceland.
D) it is reasonable to infer that other countries have a comparative advantage over Iceland in coat production.

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