The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-According to empirical observations, the cost of restricting international trade in the U.S. is much greater than the benefits generated from restriction. In the light of the above observation, which of the following statements is true?

A) Domestic producers end up earning lower profits than what they would earn without trade restrictions.
B) Consumers end up paying much more for the goods they buy in order to subsidize the relatively inefficient domestic producer.
C) U.S. GDP would be over $14 billion higher with import restrictions than without restrictions.
D) Protection of the U.S. textile and sugar industries means that all consumers pay a lower price for clothing and sugar.
E) Protection of the domestic industries enable the producers to charge lower prices for their products.

Correct Answer:

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