This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if the economy were operating in autarky and then moved to free trade, the overall impact on surplus would be a net:
A. loss of FGIJKL.
B. gain of FGIJKL.
C. gain of FGJK.
D. loss of FGJK.
Answer: B
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