A result of this country allowing international trade in crude oil is as follows: a. The effect on the well-being of the country is unclear in that domestic producer surplus increases, while the effect on domestic consumer surplus is unclear. b. The effect on the well-being of domestic crude-oil consumers is unclear in that they now buy more crude oil, but at a higher price per barrel. c. domestic consumers lose by more than domestic producers gain. d. The well-being of domestic crude-oil producers is now higher in that they now sell more crude oil at a higher price per barrel.

Question

Nico Klein

Business

5 December, 13:56

A result of this country allowing international trade in crude oil is as follows: a. The effect on the well-being of the country is unclear in that domestic producer surplus increases, while the effect on domestic consumer surplus is unclear. b. The effect on the well-being of domestic crude-oil consumers is unclear in that they now buy more crude oil, but at a higher price per barrel. c. domestic consumers lose by more than domestic producers gain. d. The well-being of domestic crude-oil producers is now higher in that they now sell more crude oil at a higher price per barrel.

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Johnny · Answer 1

a. The effect on the well-being of the country is unclear in that domestic producer surplus increases, while the effect on domestic consumer surplus is unclear.

Explanation:

Base on the scenario been described in the question, the result of a country allowing crude oil is the effect on the well-being of the country is unclear in that domestic producer surplus increases, while the effect on domestic consumer surplus is unclear