Figure 9-6

-Refer to Figure 9-6.With free trade,what would total surplus be

Name: Figure 9-6 -Refer to Figure 9-6.With free trade,what would total surplus be
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Question

Figure 9-6
 
-Refer to Figure 9-6.With free trade,what would total surplus be

Quizplus · Accepted Answer

Under free trade, the quantity exchanged would increase to 22 units at a price of $31.25. Consumer surplus would increase to $687.50 and producer surplus would increase to $0. Total surplus would be the sum of consumer and producer surplus, which is $687.50. Therefore, the correct answer is C.

Figure 9-6 -Refer to Figure 9-6.With Free Trade,what Would Total Surplus Be