Answered: When a country becomes a net-exporter…

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Economics

When a country becomes a net-exporter of a good, what happens to domesticproducer surplus?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter18: Trading With Other Nations

Section18.1: The Benefits Of World Trade

Problem 4R

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Question

When a country becomes a net-exporter of a good, what happens to domestic
producer surplus?

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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