Figure 9-8.On the diagram below,Q represents the quantity of cars and P represents the price of cars.
-Refer to Figure 9-8.In the country for which the figure is drawn,total surplus with international trade in cars
A)is represented by the area A + B + C.
B)is represented by the area A + B + D.
C)is smaller than producer surplus without international trade in cars.
D)is larger than total surplus without international trade in cars.

Question

Figure 9-8.On the diagram below,Q represents the quantity of cars and P represents the price of cars. 
-Refer to Figure 9-8.In the country for which the figure is drawn,total surplus with international trade in cars
A)is represented by the area A + B + C. 
B)is represented by the area A + B + D. 
C)is smaller than producer surplus without international trade in cars. 
D)is larger than total surplus without international trade in cars.

Quizplus · Accepted Answer

International trade typically increases total surplus by allowing countries to specialize and trade, leading to a larger total surplus compared to a closed economy without trade.