-The above figure shows the U.S.market for wheat.With no international trade,consumer surplus is equal to ________ and producer surplus is equal to ________.

Question

Quizplus · Accepted Answer

Consumer surplus is the area above the price level and below the demand curve, up to the quantity sold. Producer surplus is the area below the price level and above the supply curve, up to the quantity sold. Without international trade, the equilibrium is where the supply and demand curves intersect. Thus, consumer surplus is areas A + B + C, and producer surplus is areas E + F.

-The Above Figure Shows the U