What is the Consumer Surplus after trade?A.) $6,400B.) $9,600C.) $12,800D.) 14,400 What is Consumer Surplus before trade?A.) $14,400B.) $16,800C.) $21,600D.) $24,800 Figure 9-1284+0228000027872666054434236-30-Price241812-6+$6,400.400 800 1200 1600 2000 2400 2800$9,600.Domestic SupplyRefer to Figure 9-12. Consumer surplus after trade is$12,800.World Price$14,400.Domestic Demand++▬▬▬▬▬▬▬▬▬▬▬▬Quantity

Answered: What is the Consumer Surplus after…

What is the Consumer Surplus after trade? A.) $6,400 B.) $9,600 C.) $12,800 D.) 14,400 What is Consumer Surplus before trade? A.) $14,400 B.) $16,800 C.) $21,600 D.) $24,800

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 3QR

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Concept explainers

Revealed Preferences and Budget Constraint Analysis

Revealed means “Let Out,” and Preference means “Choice”; Choice Reveals Preference.

Question

What is the Consumer Surplus after trade?

A.) $6,400

B.) $9,600

C.) $12,800

D.) 14,400

What is Consumer Surplus before trade?

A.) $14,400

B.) $16,800

C.) $21,600

D.) $24,800

Figure 9-12
84+
022800002
78
72
66
60
54
43
42
36-
30-
Price
24
18
12-
6+
$6,400.
400 800 1200 1600 2000 2400 2800
$9,600.
Domestic Supply
Refer to Figure 9-12. Consumer surplus after trade is
$12,800.
World Price
$14,400.
Domestic Demand
++▬▬▬▬▬▬▬▬▬▬▬▬
Quantity

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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