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.
-In Figure 10-3,the total producer surplus after trade is _____.

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.

-In Figure 10-3,the total producer surplus after trade is _____.

Quizplus · Accepted Answer

To calculate the total producer surplus after trade, we need to find the area above the supply curve and below the equilibrium price () minus the area above the supply curve and below the original price (_{2). This gives us a total producer surplus of P₂LP₀. Therefore, the answer is C.}

Use the Following Figure to Answer the Questions : Figure