Figure 9-2
The figure illustrates the market for calculators in a country.
-Refer to Figure 9-2.With free trade,producer surplus is
A)$845.
B)$1,620.
C)$1,690.
D)$3,240.

Question

Figure 9-2
The figure illustrates the market for calculators in a country. 
-Refer to Figure 9-2.With free trade,producer surplus is
A)$845. 
B)$1,620. 
C)$1,690. 
D)$3,240.

Quizplus · Accepted Answer

With free trade, producer surplus is calculated as the area above the supply curve and below the world price, up to the quantity produced domestically. The correct calculation based on the given figure results in a producer surplus of $1,620.

Figure 9-2 The Figure Illustrates the Market for Calculators in a Country