Figure 9-17
-Refer to Figure 9-17.With free trade,total surplus is

Name: Figure 9-17 -Refer to Figure 9-17.With free trade,total surplus is
Brand: Quizplus
Rating: 4.7 (53 reviews)

Question

Figure 9-17 
-Refer to Figure 9-17.With free trade,total surplus is

Quizplus · Accepted Answer

Total surplus is equal to consumer surplus plus producer surplus. With free trade, consumer surplus increases from the shaded triangle ABE to the entire shaded area ACF, while producer surplus decreases from the shaded rectangle EBCF to the shaded triangle BCF. The total surplus with free trade is the sum of these areas, which equals $450.

Figure 9-17 -Refer to Figure 9-17.With Free Trade,total Surplus Is