Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market.
-Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,by how much do consumer surplus,producer surplus,and total surplus change with trade?

Question

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,by how much do consumer surplus,producer surplus,and total surplus change with trade?

Quizplus · Accepted Answer

The Answer is With trade,consumer surplus falls by $40,producer surplus rises by $60,and total surplus increases by $20.

Figure 9-26 The Following Diagram Shows the Domestic Demand and Domestic Supply