Graph 9-3
-?In Graph 9-3, area G represents:
A)consumer surplus under free trade
B)producer surplus under free trade
C)a surplus for import licence holders
D)producer surplus before trade

Question

Graph 9-3 
-?In Graph 9-3, area G represents:
A)consumer surplus under free trade 
B)producer surplus under free trade 
C)a surplus for import licence holders 
D)producer surplus before trade

Quizplus · Accepted Answer

Area G represents producer surplus under free trade. This is the area between the supply curve and the equilibrium price, up to the quantity traded.

Graph 9-3 -?In Graph 9-3, Area G Represents