Suppose Scotland goes from being an isolated country to beingan exporter of wool

Question

Suppose Scotland goes from being an isolated country to beingan exporter of wool. As a result, a. consumer suplus of Scottish consumers of woolincreases. b. producer surplus of Scottish producers of woolincreases. c. total suplus of Scottish wool consumers and producersremains constant. d. it is reasonable to infer that other countries have acomparative advantage over Scotland in wool production. Suppose Scotland goes from being an isolated country to beingan exporter of wool. As a result, a. consumer suplus of Scottish consumers of woolincreases. b. producer surplus of Scottish producers of woolincreases. c. total suplus of Scottish wool consumers and producersremains constant. d. it is reasonable to infer that other countries have acomparative advantage over Scotland in wool production.

Explanation / Answer

b. producer surplus of scottish producers of wool increases.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.