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Figure: The Market for Roses
-(Figure: The Market for Roses) Look at the figure The Market for Roses. Assume that P_A is the autarky price and P_W is the world price. Producer surplus without international trade would be area:

Question

Use the following to answer questions :
Figure: The Market for Roses

-(Figure: The Market for Roses) Look at the figure The Market for Roses. Assume that P_A is the autarky price and P_W is the world price. Producer surplus without international trade would be area:

Quizplus · Accepted Answer

Without international trade, the producer surplus would be the area of triangle X + Y, which is the area above the supply curve (S1U1B1) and below the autarky price (PS1U1B1AS1U1B0). Therefore, the correct answer is C.

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