Exhibit 33-2

-Refer to Exhibit 33-2. The U.S. demand and supply for a good are shown. Under a policy of free trade, the world price is P_W. At this price, consumers' surplus equals the area of

Question

Exhibit 33-2 -Refer to Exhibit 33-2. The U.S. demand and supply for a good are shown. Under a policy of free trade, the world price is P_W. At this price, consumers' surplus equals the area of

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the price level, up to the quantity consumed. At the world price P_W, it is the area above P_W and below the demand curve, which is P_W AC.

Exhibit 33-2 ​

Exhibit 33-2