Figure 19-4
Figure 19-4 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-4.Under autarky,the consumer surplus is area

Question

Figure 19-4
  Figure 19-4 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-4.Under autarky,the consumer surplus is area

Quizplus · Accepted Answer

Under autarky, the consumer surplus is given by the area below the demand curve and above the equilibrium price. Therefore, the consumer surplus is area R in Figure 19-4. The other areas (S and V) represent producer surplus and total welfare, respectively.

Figure 19-4 Figure 19-4 Shows the U.S. Demand and Supply