Suppose a country is a price taker in the world market and exports widgets. If the government makes exporting illegal, the domestic price for widgets will

Suppose a country is a price taker in the world market and exports widgets. If the government makes exporting illegal, the domestic price for widgets will



a.) fall, and consumer surplus will increase.
b.) fall, and consumer surplus will decrease.
c.) rise, and consumer surplus will decrease.
d.) rise, and consumer surplus will increase.


Answer: A


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