Referring to the graph above, if the world price is $8, consumer surplus (relative to the no trade situation): A. Increases by $60, and producer surplus decreases by $120 B. Increases by $80, and producer surplus increases by $80 C. Decreases by $60, and producer surplus decreases by $80 D. Decreases by $80, and producer surplus increases by $120

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Referring to the graph above, if the world price is $8, consumer surplus (relative to the no trade situation): A. Increases by $60, and producer surplus decreases by $120 B. Increases by $80, and producer surplus increases by $80 C. Decreases by $60, and producer surplus decreases by $80 D. Decreases by $80, and producer surplus increases by $120
Price
$8.00
7.00
6.00
5.00
4.00
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I
I
30 40 50 60 70
S
Quantity
Transcribed Image Text:Price $8.00 7.00 6.00 5.00 4.00 I I I 30 40 50 60 70 S Quantity
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