Multiple Choice
Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland.
-Refer to Figure 9-18.Suppose Isoland changes from a no-trade policy to a policy that allows international trade.If the world price of peaches is $5,then the policy change results in
A) a decrease in consumer surplus.
B) an increase in producer surplus.
C) an increase in total surplus.
D) All of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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