Say we allow cars, produced in other countries, to be sold in the U

Marketing Dec 24, 2020

Say we allow cars, produced in other countries, to be sold in the U.S., and that causes the prices of automobiles. Then there is a what in consumer's surplus? What does that indicate?

Expert Solution

The consumer surplus will increase, as prices will be reduced, as supply will increase, as will other countries. Car prices will fall and consumers will enjoy paying low prices.

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