Question 13 S P: ab D PW Please Pay Attention: this question is about liberalization and is about abolishing a tariff: The figure above shows the domestic market of an economy. Suppose the government decides to liberalize trade and abolish tariffs. In the figure above this move is shown by the change in price from Pt to Pw Based on the above figure, what is the effect of this change on consumers and producers? Your answer: Consumer surplus increases by a+b+c+d and producer surplus increases by a Consumer surplus increases by a+b+c+d and producer surplus decreases by a Consumer surplus decreases by a+b+c+d and producer surplus decreases by a Consumer surplus decreases by a+b+c+d and producer surplus increases by a Question 13 S P: ab D PW Please Pay Attention: this question is about liberalization and is about abolishing a tariff: The figure above shows the domestic market of an economy. Suppose the government decides to liberalize trade and abolish tariffs. In the figure above this move is shown by the change in price from Pt to Pw Based on the above figure, what is the effect of this change on consumers and producers? Your answer: Consumer surplus increases by a+b+c+d and producer surplus increases by a Consumer surplus increases by a+b+c+d and producer surplus decreases by a Consumer surplus decreases by a+b+c+d and producer surplus decreases by a Consumer surplus decreases by a+b+c+d and producer surplus increases by a