When a nation opens itself to trade in a good and becomes an importer, a. producer surplus decreases, but consumer surplus and total surplus both increase. 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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Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509
BuyFind

Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509

Solutions

Chapter 9, Problem 3CQQ
Textbook Problem

When a nation opens itself to trade in a good and becomes an importer,

a. producer surplus decreases, but consumer surplus and total surplus both increase.

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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