Figure 9-6

-Refer to Figure 9-6.What is the increase in total surplus resulting from trade
A)$0, since consumer surplus increases by $240 and producer surplus falls by $240
B)$60, since consumer surplus increases by $180 and producer surplus falls by $240
C)$60, since producer surplus increases by $240 and consumer surplus falls by $180
D)$75, since consumer surplus increases by $240 and producer surplus falls by $165

Question

Figure 9-6
 
-Refer to Figure 9-6.What is the increase in total surplus resulting from trade
A)$0, since consumer surplus increases by $240 and producer surplus falls by $240 
B)$60, since consumer surplus increases by $180 and producer surplus falls by $240 
C)$60, since producer surplus increases by $240 and consumer surplus falls by $180 
D)$75, since consumer surplus increases by $240 and producer surplus falls by $165

Quizplus · Accepted Answer

The increase in total surplus resulting from trade is equal to the sum of the increase in consumer surplus and the increase in producer surplus. In this case, consumer surplus increases by $240 (from $360 to $600), and producer surplus falls by $165 (from $405 to $240), resulting in a net increase of $75. Therefore, the correct answer is D.

Figure 9-6 -Refer to Figure 9-6.What Is the Increase in Total Surplus