-With no trade the country's consumer surplus is:
A) area a.
B) area a + b.
C) area b.
D) area c.
E) area a + b + c.

Question

-With no trade the country's consumer surplus is:
A) area a. 
B) area a + b. 
C) area b. 
D) area c. 
E) area a + b + c.

Quizplus · Accepted Answer

The consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. With no trade, the price of the good is determined by the domestic supply and demand. The consumer surplus is the area below the demand curve and above the supply curve. In this case, the consumer surplus is area a.

-With No Trade the Country's Consumer Surplus Is