Use the following to answer question:
-(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Producer surplus without international trade would be area:

Question

Use the following to answer question:

-(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Producer surplus without international trade would be area:

Quizplus · Accepted Answer

Without international trade, producer surplus will be the area of triangle XY which represents the difference between the autarky price (P_A) and the cost of production (represented by the supply curve). Therefore, the correct answer is C, X + Y.

Use the Following to Answer Question