The following figure shows the intersection of the demand and supply curves for a commodity in the domestic market at price P 2 and quantity Q 2 ,in the absence of trade.With trade,the supply curve shifts to Supply trade .
Figure 10-4
-Refer to Figure 10-4.In the absence of trade,the total producer surplus is given by _____.
A)f + g + j
B)f + g + h + j
C)f + g + h + i
D)f + g + h + i + j

Question

The following figure shows the intersection of the demand and supply curves for a commodity in the domestic market at price P 2 and quantity Q 2 ,in the absence of trade.With trade,the supply curve shifts to Supply trade .
Figure 10-4 
-Refer to Figure 10-4.In the absence of trade,the total producer surplus is given by _____.
A)f + g + j 
B)f + g + h + j 
C)f + g + h + i 
D)f + g + h + i + j

Quizplus · Accepted Answer

In the absence of trade, the total producer surplus is given by the sum of the areas above the supply curve and below the equilibrium price. In Figure 10-4, this area is represented by f + g + j.

The Following Figure Shows the Intersection of the Demand and Supply