fer to Figure 9-1. Relative to the no-trade situation, trade with the rest of the world results in a. an increase consumer surplus. b. Guatemalan consumers paying a higher price for coffee. c. a decrease in total surplus in Guatemala. d. a decrease in producer surplus in Guatemala. 140 PRICE (Dollars per unit of coffee) 110 A B D G H с LIF Domestic Demand 18 30 QUANTITY (Units of coffee) Figure 9-1 Guatemala 90 Domestic Supply 40 World Price

Principles of Microeconomics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter9: Application: International Trade
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Refer to Figure 9-1. Relative to the no-trade situation, trade with the rest of the world results in
a. an increase in consumer surplus.
b. Guatemalan consumers paying a higher price for coffee.
c. a decrease in total surplus in Guatemala.
d. a decrease in producer surplus in Guatemala.
OOO
PRICE (Dollars per unit of coffee)
140
110
90
30
A
B
с
Figure 9-1
Guatemala
D
LL
Domestic Supply
H
Domestic Demand
18
30
QUANTITY (Units of coffee)
World Price
40
Transcribed Image Text:Refer to Figure 9-1. Relative to the no-trade situation, trade with the rest of the world results in a. an increase in consumer surplus. b. Guatemalan consumers paying a higher price for coffee. c. a decrease in total surplus in Guatemala. d. a decrease in producer surplus in Guatemala. OOO PRICE (Dollars per unit of coffee) 140 110 90 30 A B с Figure 9-1 Guatemala D LL Domestic Supply H Domestic Demand 18 30 QUANTITY (Units of coffee) World Price 40
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