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

Question

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

Quizplus · Accepted Answer

The change in producer surplus from free trade is equal to the sum of areas E, B, C, and D. Therefore, answer choice B (E + B + C + D) is correct. Option A (A + B + E) includes area A, which is a part of consumer surplus, not producer surplus. Option C (B) only includes the initial producer surplus and does not account for any changes. Finally, option D (E + B) only includes two of the four relevant areas.

Figure 18-B -Refer to Figure 18-B.The Change in Producer Surplus from Free