(Figure: Market for Pants) Suppose that the world price of a pair of pants is $40. According to the figure, international trade will lead to in the domestic producer surplus and in the domestic consumer surplus. Price 100 Domestic supply 50 Domestic demand 50 100 Quantity of pants (in thousands) an increase; a decrease a decrease; a decrease a decrease; an increase an increase; an increase

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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(Figure: Market for Pants) Suppose that the world price of a pair of pants is $40. According to the figure, international trade
will lead to
in the domestic producer surplus and
in the domestic consumer surplus.
Price
100
(Domestic
supply
50
Domestic
demand
50
100
Quantity of pants
(in thousands)
an increase; a decrease
a decrease; a decrease
a decrease; an increase
an increase; an increase
Transcribed Image Text:(Figure: Market for Pants) Suppose that the world price of a pair of pants is $40. According to the figure, international trade will lead to in the domestic producer surplus and in the domestic consumer surplus. Price 100 (Domestic supply 50 Domestic demand 50 100 Quantity of pants (in thousands) an increase; a decrease a decrease; a decrease a decrease; an increase an increase; an increase
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