Figure 9-19.On the diagram below,Q represents the quantity of textiles and P represents the price of textiles.
-Refer to Figure 9-19.With free trade,consumer surplus in the textile market amounts to

Question

Figure 9-19.On the diagram below,Q represents the quantity of textiles and P represents the price of textiles. 
-Refer to Figure 9-19.With free trade,consumer surplus in the textile market amounts to

Quizplus · Accepted Answer

In the diagram, the consumer surplus is the area above the market price (P1) and below the demand curve (D), up to the quantity of textiles consumed (Q1). The consumer surplus is calculated as 1/2 x (P1-P0) x Q1, which is (25-10) x 27 = $405. Therefore, the correct answer is C, $405.