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10 Mar 2018
The world price of grapefruits is above the price that currently prevails in Cuba in the absence of trade. Assuming that Cuba is a small economy compared to the rest of the world, what happens if Cuba decides to open up trade with the world grapefruit market?
The price of domestic Cuban grapefruit for consumers will...
(A) Decrease.
(B) Increase.
(C) Not Change.
Cuban exports of grapefruits will...
(A) Decrease.
(B) Increase.
(C) Not Change.
Lastly, consumer surplus in Cuba will...
(A) Decrease.
(B) Increase.
(C) Not Change.
While producer surplus in Cuba will...
(A) Decrease.
(B) Increase.
(C) Not Change.
The world price of grapefruits is above the price that currently prevails in Cuba in the absence of trade. Assuming that Cuba is a small economy compared to the rest of the world, what happens if Cuba decides to open up trade with the world grapefruit market?
The price of domestic Cuban grapefruit for consumers will...
(A) Decrease.
(B) Increase.
(C) Not Change.
Cuban exports of grapefruits will...
(A) Decrease.
(B) Increase.
(C) Not Change.
Lastly, consumer surplus in Cuba will...
(A) Decrease.
(B) Increase.
(C) Not Change.
While producer surplus in Cuba will...
(A) Decrease.
(B) Increase.
(C) Not Change.
2 Jun 2021
