(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Consumer surplus without international trade would be area:

A) W + X + Y.
B) Z.
C) W + X + Z.
D) W.

Question

Riley Wiebe · Accepted Answer

Final Answer : D, Explanation :  Without international trade, the equilibrium price would be P A  and the quantity exchanged would be Q1U1B1. Consumer surplus would be the area above the equilibrium price and below the demand curve, which is represented by area W. Therefore, the answer is D.

(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Consumer surplus without international trade would be area:

A) W + X + Y.
B) Z.
C) W + X + Z.
D) W.

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Learning Objectives

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(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that PA is the autarky price and PW is the world price.Consumer surplus without international trade would be area:A) W + X + Y.B) Z.C) W + X + Z.D) W.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Consumer surplus without international trade would be area:

A) W + X + Y.
B) Z.
C) W + X + Z.
D) W.