Questions
Microeconomics Week 4 Final Exam Microeconomics Week 4 Final Exam
Multiple choice
Figure 9-2Refer to Figure 9-2. The increase in total surplus resulting from trade is
Options
A.$7,680, since consumer surplus increases by $9,216 and producer surplus falls by $1,536.
B.$3,840, since consumer surplus increases by $10,560 and producer surplus falls by $6,720.
C.$23,280, since consumer surplus increases by $34,920 and producer surplus falls by $11,640.
D.$1,920, since consumer surplus increases by $2,688 and producer surplus falls by $768.
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Step-by-Step Analysis
Let's analyze the given information and each answer choice in turn to understand the total surplus change from trade.
Option 1: '$7,680, since consumer surplus increases by $9,216 and producer surplus falls by $1,536.' Here the net change would be CS increase minus PS decrease equals 9,216 - 1,536 = 7,680. Although the arithmetic in isolation is correct, these CS and PS figures do not match the values im......Login to view full explanationLog in for full answers
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