15. What is the welfare gain to consumers (increase in consumer's surplus) resulting from trade in country 2?a) $3b) $27c) $31.5d) $40.5e) 45 COUNTRY 1INTERNATIONAL MARKETCOUNTRY 2252525S2202020s21515S115s110IP10FIP10EIPD2d2d1D10 3 6 9 12151821240 3 6 9 1215182124 o0 3 6 9 1215182124 QLOP.

Consumer surplus: Consumer surplus is measured as the triangular area under the demand curve and…

Answered: 15. What is the welfare gain to…

15. What is the welfare gain to consumers (increase in consumer's surplus) resulting from trade in country 2? a) $3 b) $27 c) $31.5 d) $40.5 e) 45

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

15. What is the welfare gain to consumers (increase in consumer's surplus) resulting from trade in country 2? a) $3 b) $27 c) $31.5 d) $40.5 e) 45

COUNTRY 1
INTERNATIONAL MARKET
COUNTRY 2
25
25
25
S2
20
20
20
s2
15
15
S1
15
s1
10
IP
10
FIP
10
EIP
D2
d2
d1
D1
0 3 6 9 1215182124
0 3 6 9 1215182124 o
0 3 6 9 1215182124 Q
LO
P.

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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