Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland.
-Refer to Figure 9-18.Suppose Isoland changes from a no-trade policy to a policy that allows international trade.If the world price of peaches is $3,then the policy change results in a
A)$15.00 decrease in producer surplus.
B)$45.00 increase in consumer surplus.
C)$20.00 increase in total surplus.
D)$12.50 increase in total surplus.

Question

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland. 
-Refer to Figure 9-18.Suppose Isoland changes from a no-trade policy to a policy that allows international trade.If the world price of peaches is $3,then the policy change results in a
A)$15.00 decrease in producer surplus. 
B)$45.00 increase in consumer surplus. 
C)$20.00 increase in total surplus. 
D)$12.50 increase in total surplus.

Quizplus · Accepted Answer

The Answer of Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland. 
-Refer to Figure 9-18.Suppose Isoland changes from a no-trade policy to a policy that allows international trade.If the world price of peaches is $3,then the policy change results in a
A)$15.00 decrease in producer surplus. 
B)$45.00 increase in consumer surplus. 
C)$20.00 increase in total surplus. 
D)$12.50 increase in total surplus.