-The above figure shows the Australian market for wheat. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________.

Question

Quizplus · Accepted Answer

In a market without international trade, consumer surplus is represented by the area above the price level and below the demand curve, up to the quantity sold. Producer surplus is the area below the price level and above the supply curve, up to the quantity sold. Therefore, consumer surplus is area A + area B + area C, and producer surplus is area E + area F.

-The Above Figure Shows the Australian Market for Wheat