Figure 9-5
The figure illustrates the market for tricycles in a country.
-Refer to Figure 9-5.With trade,consumer surplus is

Question

Figure 9-5
The figure illustrates the market for tricycles in a country. 
-Refer to Figure 9-5.With trade,consumer surplus is

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay. In this case, without trade, consumer surplus is shown by the triangle ABD and equals $3,240. With trade, consumer surplus is shown by the larger triangle ACD and equals $6,760. Therefore, the best choice is C.

Figure 9-5 The Figure Illustrates the Market for Tricycles in a Country