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.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

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.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 above the world price (Pw) and below the domestic demand curve (D), which is the triangle h + i.

Use the Following Figure to Answer the Questions : Figure