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Scenario 9-1 The Before-Trade Domestic Price of Peaches in the United States

Question 235

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Scenario 9-1
The before-trade domestic price of peaches in the United States is $40 per bushel.The world price of peaches is $52 per bushel.The U.S.is a price-taker in the market for peaches.
-Refer to Scenario 9-1.If trade in peaches is allowed,U.S.producers of peaches


A) will be better off.
B) will be worse off.
C) will be unaffected.
D) will experience a decrease in their collective producer surplus.

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