The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.
-Based on the figure above,as a result of international trade,consumer surplus
A) increases by $15 billion.
B) decreases by $15 billion.
C) increases by $27.5 billion.
D) decreases by $12.5 billion.
E) remains unchanged.

Question

The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.
-Based on the figure above,as a result of international trade,consumer surplus
A) increases by $15 billion. 
B) decreases by $15 billion. 
C) increases by $27.5 billion. 
D) decreases by $12.5 billion. 
E) remains unchanged.

Quizplus · Accepted Answer

The Answer of  
The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.
-Based on the figure above,as a result of international trade,consumer surplus
A) increases by $15 billion. 
B) decreases by $15 billion. 
C) increases by $27.5 billion. 
D) decreases by $12.5 billion. 
E) remains unchanged.

The Figure Above Shows the U