Figure 9-2

-Refer to Figure 9-2.What is the increase in total surplus in China because of trade
A)$500
B)$800
C)$1000
D)$1100

Question

Figure 9-2
 
-Refer to Figure 9-2.What is the increase in total surplus in China because of trade
A)$500 
B)$800 
C)$1000 
D)$1100

Quizplus · Accepted Answer

The increase in total surplus in China because of trade is $500. This is because the price of the good in China increases from $10 to $15, and the quantity of the good consumed in China increases from 50 to 75. The increase in consumer surplus is $250, and the increase in producer surplus is $250. The total increase in surplus is $500.

Figure 9-2 -Refer to Figure 9-2.What Is the Increase in Total Surplus