The following figure shows the intersection of the demand and supply curves for a commodity in the domestic market at price P 2 and quantity Q 2 ,in the absence of trade.With trade,the supply curve shifts to Supply trade .
Figure 10-4
-Refer to Figure 10-4.The net gain to domestic residents when they trade with foreign suppliers is represented by _____.
A)d + e
B)h + i
C)k + l + m
D)f + g + j

Question

The following figure shows the intersection of the demand and supply curves for a commodity in the domestic market at price P 2 and quantity Q 2 ,in the absence of trade.With trade,the supply curve shifts to Supply trade .
Figure 10-4 
-Refer to Figure 10-4.The net gain to domestic residents when they trade with foreign suppliers is represented by _____.
A)d + e 
B)h + i 
C)k + l + m 
D)f + g + j

Quizplus · Accepted Answer

The net gain to domestic residents when they trade with foreign suppliers is represented by the area h + i, which is the consumer surplus gained by domestic residents who buy the imported product at a lower price than the domestic price.

The Following Figure Shows the Intersection of the Demand and Supply