This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.According to the graph shown, if this economy were to open to trade, which amount of surplus would be transferred?
A. Area BC would be transferred to the consumer.
B. Area BC would be transferred to the producer.
C. Area BCD would be transferred to the consumer.
D. Area BCD would be transferred to the producer.
Answer: B
You might also like to view...
The M-Form of corporate organization
a. organizes employees along the functions or tasks that they perform b. organizes employees along the customer types that they serve c. organizes employees along individual projects that arise d. organizes employees into softball teams
Economic efficiency indicates that
a. if something is worth doing, you should do it as well as humanly possible. b. all pollution should be eliminated. c. automobiles should be made as safe as possible d. it nearly always makes sense to stop an activity well before perfection is achieved.