Question

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.

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.

Step-by-step 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