Figure 9-2
The figure illustrates the market for calculators in a country.
-Refer to Figure 9-2.As a result of trade,total surplus increases by
A)$50.
B)$100.
C)$250.
D)$500.

Question

Figure 9-2
The figure illustrates the market for calculators in a country. 
-Refer to Figure 9-2.As a result of trade,total surplus increases by
A)$50. 
B)$100. 
C)$250. 
D)$500.

Quizplus · Accepted Answer

Trade allows the country to consume at a lower price and increases the quantity consumed, resulting in an increase in consumer surplus. Additionally, producers are able to sell their products at a higher price in the international market, resulting in an increase in producer surplus. The total increase in surplus is the sum of consumer surplus and producer surplus, which in this case is $250. Therefore, choice C is the correct answer.

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