The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In the figure above, international trade ________ total surplus in the United States by ________.

Question

Quizplus · Accepted Answer

International trade increases total surplus in the United States by $1.92 billion. This is because trade typically allows for a more efficient allocation of resources, leading to an increase in total surplus.

The Figure Shows the Market for Helicopters in the United