Figure 9-4 Figure 9-4 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 9-4. Suppose the government allows imports of leather footwear into the United States. The market price falls to $24. What area represents consumer surplus?

Question

Figure 9-4  Figure 9-4 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 9-4. Suppose the government allows imports of leather footwear into the United States. The market price falls to $24. What area represents consumer surplus?

Quizplus · Accepted Answer

Consumer surplus is the area above the price level and below the demand curve. When the market price falls to $24, consumer surplus is represented by the area R + S + T + U.

Figure 9-4 Figure 9-4 Shows the U