1562EconomicsMedium
With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will ________ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper?
A1,600 computers, decrease, increase
B1,200 computers, increase, decrease
C1,600 computers, increase, decrease
D1,200 computers, decrease, increase
Correct answer
C. 1,600 computers, increase, decrease
Explanation
The correct answer is 1,600 computers, increase, decrease.