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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Lesson 12 Question 1
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