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

Question

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

Quizplus · Accepted Answer

The change in total surplus from free trade is represented by the two triangles which are C and D. Therefore, the correct answer is C) C+D. A and B are part of the producer surplus, and since they are not affected by the change in trade, they do not represent a change in total surplus. Similarly, D and B represent the consumer surplus, but since D represents only the change in consumer surplus and B represents the original consumer surplus, the sum of both represents only the consumer surplus, not the total surplus. Therefore, the correct answer is C, which represents the total surplus change due to free trade.

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