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Question 103

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Use the following to answer questions :
Figure: The Market for Thumb Drives Use the following to answer questions : Figure: The Market for Thumb Drives   -(Figure: The Market for Thumb Drives)  Look at the figure The Market for Thumb Drives. Assume that P<sub>A</sub> is the autarky price, P<sub>W</sub> is the world price, and D and S represent domestic demand and supply, respectively. Producer surplus in free trade equals the area: A) B + C. B) B + C + D +E. C) B + E. D) E.
-(Figure: The Market for Thumb Drives) Look at the figure The Market for Thumb Drives. Assume that PA is the autarky price, PW is the world price, and D and S represent domestic demand and supply, respectively. Producer surplus in free trade equals the area:


A) B + C.
B) B + C + D +E.
C) B + E.
D) E.

Correct Answer:

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