Figure 7-1 Figure 7-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 7-1.Under autarky,the consumer surplus is area

Question

Figure 7-1  Figure 7-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 7-1.Under autarky,the consumer surplus is area

Quizplus · Accepted Answer

Under autarky, consumer surplus is the area below the demand curve and above the autarky price. In Figure 7-1, this is represented by area R, hence the correct answer is A. Area S represents producer surplus, while areas V and T are deadweight losses.

Figure 7-1 Figure 7-1 Shows the U