Use the following figure to answer the questions : Figure 10-4 : 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 .
-Refer to Figure 10-4.In the absence of trade,the total producer surplus is given by _____.
A)f + g + j
B)f + g + h + j
C)f + g + h + i
D)f + g + h + i + j

Question

Use the following figure to answer the questions : Figure 10-4 : 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 . 
-Refer to Figure 10-4.In the absence of trade,the total producer surplus is given by _____.
A)f + g + j 
B)f + g + h + j 
C)f + g + h + i 
D)f + g + h + i + j

Quizplus · Accepted Answer

In the absence of trade, the total producer surplus is the area above the supply curve and below the equilibrium price, which is represented by the area f + g + j.

Use the Following Figure to Answer the Questions : Figure