Figure 9-1

Uganda

-Refer to Figure 9-1. With trade, total surplus in the Ugandan coffee market amounts to

Question

Figure 9-1
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 Uganda

-Refer to Figure 9-1. With trade, total surplus in the Ugandan coffee market amounts to

Quizplus · Accepted Answer

Total surplus in a market with trade is the sum of consumer surplus, producer surplus, and the gains from trade (which can include the area representing the benefits of importing or exporting). Without the specific details from Figure 9-1, such as the equilibrium price, quantity, and the effects of trade on these, it's challenging to calculate directly. However, assuming choice C is correct, it suggests that with the introduction of trade, the sum of consumer surplus, producer surplus, and any gains from trade (either from importing or exporting) in the Ugandan coffee market equals $880.00. This would typically involve analyzing areas on a supply and demand graph where the areas above the supply curve and below the demand curve up to the trade price represent the total surplus.

Figure 9-1 ​

Figure 9-1