With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal ________ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted? - Answer and Explanation

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Academy of PakistanTest & Learning

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With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal ____ and its consumer surplus would relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted?

A25 calculators increase

B30 calculators increase

C25 calculators decrease

D20 calculators increase

Correct answer

B. 30 calculators increase

Explanation

The correct answer is 30 calculators increase.

With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal ________ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted? - Answer and Explanation | Academy of Pakistan