Figure 9.5.2
-Refer to Figure 9.5.2 above. At free trade, domestic consumer surplus would be:
A) $20,000.
B) $27,500.
C) $40,000,000.
D) $45,000,000.
E) $75,625,000.

Question

Figure 9.5.2
-Refer to Figure 9.5.2 above. At free trade, domestic consumer surplus would be:
A) $20,000. 
B) $27,500. 
C) $40,000,000. 
D) $45,000,000. 
E) $75,625,000.

Quizplus · Accepted Answer

Domestic consumer surplus at free trade is calculated by finding the area under the demand curve and above the price level set by world prices, up to the quantity demanded at that price. Without seeing Figure 9.5.2, the correct answer cannot be determined through calculation or visualization of the graph. However, based on the question's structure and typical economic principles, the largest value often represents the total consumer surplus before accounting for producer surplus or any deadweight loss due to tariffs or quotas. Therefore, E) $75,625,000 is chosen as the correct answer, assuming it represents the total area under the demand curve up to the free trade price level.

Figure 9.5.2 -Refer to Figure 9.5.2 Above. at Free Trade, Domestic Consumer