Author Question: A country opens up to trade and becomes an exporter of wheat. In the wheat market, consumer surplus ... (Read 166 times)

809779 · **on:** Jun 29, 2018

A country opens up to trade and becomes an exporter of wheat. In the wheat market, consumer surplus will ________, producer surplus will ________, and total surplus will ________.

A) decrease; increase; increase
B) increase; decrease; increase
C) decrease; increase; decrease
D) remain unchanged; increase; increase

Question 2

In the above figure, the economy is initially at point B. Then the price level falls by 10. The wealth effect will help

A) move the economy to point A.
B) move the economy to point C.
C) move the economy to point D.
D) keep the economy to point B.