Asked by
Jerami Joseph
on Oct 25, 2024Verified
Exports increase producer surplus but decrease consumer surplus and total surplus.
Producer Surplus
The difference between what producers are willing to accept for a good or service versus what they actually receive, typically represented by the area above the supply curve and below the market price.
Consumer Surplus
The variance between the amount consumers are inclined to pay for a good or service and what they actually pay.
- Determine the impacts of global trade on the surplus of producers and consumers.
Verified Answer
KD
Learning Objectives
- Determine the impacts of global trade on the surplus of producers and consumers.
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