Figure 9-2
-Refer to Figure 9-2. Without trade, consumer surplus amounts to

Name: Figure 9-2 -Refer to Figure 9-2. Without trade, consumer surplus amounts to
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Question

Figure 9-2  ​
-Refer to Figure 9-2. Without trade, consumer surplus amounts to

Quizplus · Accepted Answer

Consumer surplus is calculated as the area above the price level and below the demand curve, up to the quantity consumed. Without trade, we look at the domestic equilibrium where supply equals demand. The area representing consumer surplus is a triangle. To calculate the area of a triangle, use the formula (base * height) / 2.

Figure 9-2 ​

Figure 9-2