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 could be used to compensate the sellers.
B) The sellers could be taxed and the tax revenue could be 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.

ANSWER:

B