When a nation opens itself to trade in a good andbecomes an importer,a. producer surplus decreases, but consumersurplus and total surplus both increase.b. producer surplus decreases, consumer surplusincreases, and so the impact on total surplus isambiguous.c. producer surplus and total surplus increase, butconsumer surplus decreases.d. producer surplus, consumer surplus, and totalsurplus all increase.
When a nation opens itself to trade in a good andbecomes an importer,a. producer surplus decreases, but consumersurplus and total surplus both increase.b. producer surplus decreases, consumer surplusincreases, and so the impact on total surplus isambiguous.c. producer surplus and total surplus increase, butconsumer surplus decreases.d. producer surplus, consumer surplus, and totalsurplus all increase.
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 3CQQ
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Question
When a nation opens itself to trade in a good and
becomes an importer,
a.
surplus
b. producer surplus decreases, consumer surplus
increases, and so the impact on total surplus is
ambiguous.
c. producer surplus and total surplus increase, but
consumer surplus decreases.
d. producer surplus, consumer surplus, and total
surplus all increase.
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