The Following Figure Shows the Demand Curve, D, and the Supply

The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia. The world price of calculators is $40.

-Refer to the figure above.Which of the following best describes a method to compensate the group that was made worse off when Barylia opened to free trade?

A) The buyers could be taxed and the tax revenue used to compensate the sellers.
B) The sellers could be taxed and the tax revenue used to compensate the buyers.
C) Barylia could sell the calculators at a price below the domestic equilibrium price in the global market.
D) Barylia could sell the calculators at a price above the world price in the global market.

Correct Answer:

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