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, domestic producers would:

A. transfer surplus in area DE to consumers.
B. lose surplus in area FG to foreign producers.
C. transfer surplus in area DE to foreign producers.
D. lose surplus in area FG to deadweight loss.


Answer: A

Economics

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Economics