The following figure shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market.
Figure 10-3
-In Figure 10-3,the total producer surplus after trade is _____.

Question

The following figure shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market.
Figure 10-3

-In Figure 10-3,the total producer surplus after trade is _____.

Quizplus · Accepted Answer

Total producer surplus after trade is the area between the supply curve and the equilibrium price (P1) minus the area between the supply curve and the initial price (P0). Therefore, the area of producer surplus after trade is P₂LP₀.

The Following Figure Shows the Demand and Supply for a Commodity