The graph above shows supply and demand in the domestic market without trade.Consumer surplus without trade is represented by area
A)P1-E-Po
B)P1-E-0
C)Po-E-0
D)P1-E-Qo

Question

The graph above shows supply and demand in the domestic market without trade.Consumer surplus without trade is represented by area
A)P1-E-Po 
B)P1-E-0 
C)Po-E-0 
D)P1-E-Qo

Quizplus · Accepted Answer

The consumer surplus without trade is the area between the demand curve and the price line at equilibrium (Po-E-P1). Therefore, option A (P1-E-Po) represents the correct range for consumer surplus without trade. Option B (P1-E-0) and D (P1-E-Qo) do not reflect the correct range for consumer surplus, while option C (Po-E-0) is ambiguous and does not relate specifically to consumer surplus.

The Graph Above Shows Supply and Demand in the Domestic