A country takes no part in international trade and its domestic market price is ${P_d}$. The country decides to engage in free trade and the market price rises to the world price (${P_w}$).
What happens to consumer surplus and producer surplus when the economy engages in free trade?
1 )
Domestic consumers gain Z only.
Domestic consumers lose X + Y.
3 )
Domestic producers gain Z only.
4 )
Domestic producers lose X + Y + Z.
تحلیل ویدئویی تست
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