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. Question Completion Status This figure shows demand and supply for a product in country A which is interested in engaging in international trade. The
. Question Completion Status This figure shows demand and supply for a product in country A which is interested in engaging in international trade. The import price from country Cis $3 and from country B is $4. Country A imposes a fixed tariff of $2 per unit of import. Answer the following questions based on these assumptions. 13 Price A 12 11 Demand 10 9 Supply 8 G 5 R 4 E Q 3 2 C M N Quantityto Supply 6 G 5 U 4 E P 3 2 1 C OO M N Quantity Based on information provided in the figure above, if country A decides to enter into a free trade agreement with country B, the change in producer surplus, relative to pre FTA will be: O a. gain of GITR O b. loss of GIJJE O c loss of RTJE O d. loss of GITR
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