Figure 9-17
-Refer to Figure 9-17.When comparing no trade to free trade,the gain from trade is

Question

Figure 9-17 
-Refer to Figure 9-17.When comparing no trade to free trade,the gain from trade is

Quizplus · Accepted Answer

The gain from trade is the difference between the total surplus with trade and the total surplus without trade. In this case, with free trade, total surplus is $350 ($200 consumer surplus + $150 producer surplus). Without trade, total surplus is $200 ($100 consumer surplus + $100 producer surplus). Therefore, the gain from trade is $150 ($350 - $200).

Figure 9-17 -Refer to Figure 9-17.When Comparing No Trade to Free Trade,the