The above figure shows the U.S. market for chocolate. With international trade, consumer surplus is equal to
A) area A + area B + area C + area D.
B) area A.
C) area B + area C + area D.
D) area C + area D.
E) area E.
A
Economics
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A drought destroyed a large amount of orange crops in California, leading to
A) a decrease in supply of oranges. B) a decrease in quantity supplied of oranges. C) a decrease in demand for oranges. D) a decrease in quantity demanded for oranges.
Economics
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Economics