Use the following figure to answer the questions : Figure 10-3 : shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market.
-Refer to Figure 10-3.The total producer surplus prior to trade was _____.

Question

Use the following figure to answer the questions : Figure 10-3 : shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market.

-Refer to Figure 10-3.The total producer surplus prior to trade was _____.

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve but below the price level. Prior to trade, this is represented by the area under the domestic price level but above the supply curve, which is correctly depicted in option A.

Use the Following Figure to Answer the Questions : Figure