Question

uestion 30 3.3 points With a very strong steel industry in Bulgaria, bicycles are produced and sold domestically. Since the government in Bulgaria allowed trade in the late 1990s, Bulgaria became an exporter of bicycles, domestic producers of bicycles are worse oft, domestic consumers of bicycles are better off, and the total welfare of the country increases. domestic producers of bicycles are better oft, domestic consumers of bicycles are worse off, and the total welfare of the country increases domestic producers of bicycles are worse off, domestic consumers of bicycles are better off, and the total welfare of the country decreases. domestic producers of bicycles are better off domestic consumers of bicycles are orse off, and the total welfare of the country decreases

Answer 1

# With opening of trade Bulgaria become exporter → Bulgaria will exporter only of World price is more than Price before opening of trade. So with opening of trade price of bicycle will truазх. - This increase in price will increase producer Suplus so producu are better 37 -> The increase in price will lead to decrease in conuume Surplus so conuumes will be Овия Since increase in price (ie to World Prece) will leeed to increase in producer Surplus more then that of decrease of conreener surplus. [: Potal Welfare - Consumer Seaplast Pollucer Seeples] So lotel Welface will increase and option is correct Scanned with CamScanner