Figure 18-A
-Refer to Figure 18-A.The change in consumer surplus from free trade is equal to area:

Question

Figure 18-A 
-Refer to Figure 18-A.The change in consumer surplus from free trade is equal to area:

Quizplus · Accepted Answer

The change in consumer surplus from free trade can be calculated by finding the difference between the consumer surplus in autarky (represented by area A) and the consumer surplus after free trade (represented by the area A + B). Therefore, the change in consumer surplus is equal to area B + C. However, since free trade results in a gain in consumer surplus, the answer should be negative. Hence, the correct answer is B, which is - (B + C).

Figure 18-A -Refer to Figure 18-A.The Change in Consumer Surplus from Free