Use the following to answer question: -(Figure: The Gains from Trade)Look at the figure The Gains from Trade.When demand increases from D₁ to D₂,equilibrium total surplus: A)decreases by $10.00. B)increases by $12.75. C)decreases by $15.00. D)increases by $27.50.

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When demand shifts from D₁ to D₂, the new equilibrium price is $22.50 and the new equilibrium quantity is 75. The new consumer surplus is 0.5 * (25-22.5) * 75 = $93.75, an increase of $18.75 from the previous consumer surplus. The new producer surplus is 0.5 * (22.5-10) * 75 = $787.50, an increase of $9.375 from the previous producer surplus. Thus, the total surplus increases by $18.75 + $9.375 = $28.125, which is approximately $27.50. Therefore, the correct answer is D.

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