Suppose that the world price of a pair of pants is $60, so domestic producers will export some of the pants they produce. According to the figure, the total domestic economic surplus (which includes producer and consumer surplus) in the free-trade equilibrium will be the total domestic economic surplus without trade. The difference will be Price 100 Domestic supply 50 Domestic demand 90 100 ) Quantity (in thousands) 10 20 30 40 50 60 70 80 Select one: a. less than; $200,000 b. greater than; $200,000 C. greater than; $100,000 d. less than; $100,000

Suppose that the world price of a pair of pants is $60, so domestic producers will export some of the pants they produce. According to the figure, the total domestic economic surplus (which includes producer and consumer surplus) in the free-trade equilibrium will be the total domestic economic surplus without trade. The difference will be Price 100 Domestic supply 50 Domestic demand 90 100 ) Quantity (in thousands) 10 20 30 40 50 60 70 80 Select one: a. less than; $200,000 b. greater than; $200,000 C. greater than; $100,000 d. less than; $100,000

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 3CQQ

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