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Consider a small open economy that produces natural gas for export. The world price of natural gas is greater than the country's autarky price of
Consider a small open economy that produces natural gas for export. The world price of natural gas is greater than the country's autarky price of natural gas. Opening to trade will increase the producer surplus of domestic natural gas exporters by less than it decreases the consumer surplus of domestic natural gas consumers.
True or False? Explain.
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