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

Multiple Choice

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,the

A) price paid by American consumers of peaches is unchanged relative to the no-trade situation.
B) total well-being of American producers of peaches is diminished relative to the no-trade situation.
C) total well-being of American consumers of peaches is enhanced relative to the no-trade situation.
D) total well-being of the United States is enhanced relative to the no-trade situation.