Use the following to answer question 14:Figure: Foreign Trade MarketDomestic supply*World supplyDomestic demand8,000 10,000$1065,00014. (Figure: Foreign Trade Market) Refer to the figure. What is the dollar value of the lostconsumer surplus as a result of prohibiting trade in this market?A) $26,000B) $28,000C) $32,000D) $36,000

Consumer surplus equals to area above the price line and under the demand curve.

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consumer surplus as a result of prohibiting trade in this market? A) $26,000 B) $28,000

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Total Surplus and Deadweight Loss

Economists generally define efficiency as when it is impossible to improve the situation of one party without imposing a cost on another. Conversely, if a situation gets inefficient, a party will benefit more than the other without imposing costs on others.

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