FILL IN THE BLANK. when a nation imports a good, its ________ surplus increases and its ________ surplus increases.



Answer :

When imports are made by a nation, it results in an increase in the total surplus and the consumer surplus increases.

Imports refer to purchase of goods from foreign producers operating in foreign countries. Imports result in an increase in the consumer surplus because consumers are able to get better quality products at lower prices. They do not have to purchase high priced low quality products from the domestic market. This causes an increase in the total market surplus as well. Hence, imports result in an increase in both total surplus as well as the consumer surplus.

To know more about consumer surplus, refer to:

https://brainly.com/question/13136036

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