Figure 9-23
The following diagram shows the domestic demand and domestic supply for a market.Assume that the world price in this market is $120 per unit.
-Refer to Figure 9-23.Consumer surplus with free trade is
A)$75.
B)$150.
C)$200.
D)$300.

Question

Figure 9-23
The following diagram shows the domestic demand and domestic supply for a market.Assume that the world price in this market is $120 per unit. 
-Refer to Figure 9-23.Consumer surplus with free trade is
A)$75. 
B)$150. 
C)$200. 
D)$300.

Quizplus · Accepted Answer

Consumer surplus with free trade is the area below the demand curve and above the world price line. In this case, the consumer surplus is $75.

Figure 9-23 The Following Diagram Shows the Domestic Demand and Domestic Supply