Use the following figure to answer the questions : Figure 10-3 : shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market.
-Refer to Figure 10-3.The total consumer surplus prior to trade was _____.

Question

Use the following figure to answer the questions : Figure 10-3 : shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market.

-Refer to Figure 10-3.The total consumer surplus prior to trade was _____.

Quizplus · Accepted Answer

The total consumer surplus prior to trade is the area above the equilibrium price (PS1) and below the demand curve (U1B14). This area is represented by the triangle formed by points PS1, U1, and B14, which is labeled as EP₃ in Figure 10-3.

Use the Following Figure to Answer the Questions : Figure