-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,where imports are permitted,the world price is P_W.If there is a policy change such that imports are prohibited,the price becomes P_N,consumers' surplus equals __________ and producers' surplus equals __________.

Question

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,where imports are permitted,the world price is P<sub>W</sub>.If there is a policy change such that imports are prohibited,the price becomes P<sub>N</sub>,consumers' surplus equals __________ and producers' surplus equals __________. A) P<sub>N</sub>AB; P<sub>N</sub>BE B) BCD; P<sub>N</sub>DE C) P<sub>N</sub>AD; BCD D) P<sub>N</sub>AD; P<sub>W</sub>BDE E) none of the above

Quizplus · Accepted Answer

The Answer of -Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,where imports are permitted,the world price is P_W.If there is a policy change such that imports are prohibited,the price becomes P_N,consumers' surplus equals __________ and producers' surplus equals __________. A) P_NAB; P_NBE B) BCD; P_NDE C) P_NAD; BCD D) P_NAD; P_WBDE E) none of the above