The figures below illustrate a situation of a trade embargo. In Figure (a) Dd and Sd are the domestic demand and supply curves of the embargoing countries. Prior to the embargo there was free trade at the world price of P0.
The embargoing country loses area ________ while the target country loses area.
A. (b + c); (a + c).
B. a; b.
C. (a + d); (b + c).
D. a; (b + c).
Answer: D
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