This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good.
According to the graph shown,if this economy were an autarky,producers would enjoy area:

Question

This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. 
According to the graph shown,if this economy were an autarky,producers would enjoy area:

Quizplus · Accepted Answer

If the economy were an autarky, it means there is no international trade, and the economy only relies on its domestic production and consumption.

In the graph, the domestic demand (DD) curve intersects with the domestic supply (DS) curve at point E, which represents the equilibrium price and quantity of the good in the domestic market. However, this equilibrium price (Pd) is higher than the world price (Pw), which is shown as a horizontal line in the graph.

Therefore, if the economy were an autarky, there would be no imports or exports of the good, and the domestic producers would sell their output at a higher price (Pd) than the world price (Pw). As a result, producers would enjoy an area of profit represented by the triangle EFG.

The other areas (BCEFG, BCDEFG, and G) include either consumer surplus or deadweight loss, which are not relevant to the question of producer surplus in an autarky.

This Graph Demonstrates the Domestic Demand and Supply for a Good,as