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-(Figure: The Market for Tea in Sri Lanka) Use Figure: The Market for Tea in Sri Lanka.In autarky,the price is P₁,consumer surplus equals _____ and producer surplus equals _____.

Question

Use the following to answer question:

-(Figure: The Market for Tea in Sri Lanka) Use Figure: The Market for Tea in Sri Lanka.In autarky,the price is P₁,consumer surplus equals _____ and producer surplus equals _____.

Quizplus · Accepted Answer

In autarky, the equilibrium price is PS1 and the equilibrium quantity is U1. Consumer surplus is represented by the area above the equilibrium price and below the demand curve, which is F + G + H. Producer surplus is represented by the area below the equilibrium price and above the supply curve, which is J + K. Therefore, the correct answer is D.

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