Figure 9-10.The figure applies to Mexico and the good is rifles.
-Refer to Figure 9-10.The area bounded by the points (Q₀,P₀) , (Q₂,P₁) ,and (Q₁,P₁) represents

Question

Figure 9-10.The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10.The area bounded by the points (Q₀,P₀), (Q₂,P₁),and (Q₁,P₁)represents

Quizplus · Accepted Answer

The area bounded by the points represents Mexico's gains from trade as it shows the increase in consumer surplus and producer surplus due to trade. It does not signify any loss in total surplus, and the option (B) is incorrect as it mentions a specific comparison of producer surplus and consumer surplus. Therefore, (C) and (D) are also not correct options.