Price of oranges Domestic „supply M N Pw Domestic demand Cr Quantity of oranges (Figure: The Market for Oranges in South Africa) Use Figure: The Market for Oranges in South Africa. In autarky, the price of oranges in South Africa is P1. When the economy is opened to trade, the price falls to Pw and the change in total surplus is area: O M+N+O+P. O. 0+P. O M+N+O+P+Q.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Figure: The Market for Oranges in South Africa
Price of |
oranges
Domestic
Ayddns
Pw
Domestic
demand
Quantity of oranges
(Figure: The Market for Oranges in South Africa) Use Figure: The Market for Oranges in South Africa. In
autarky, the price of oranges in South Africa is P1. When the economy is opened to trade, the price falls to Pw
and the change in total surplus is area:
O M+N+ 0+P.
O.
O+ P.
O M+N+O+ P+Q.
Transcribed Image Text:Figure: The Market for Oranges in South Africa Price of | oranges Domestic Ayddns Pw Domestic demand Quantity of oranges (Figure: The Market for Oranges in South Africa) Use Figure: The Market for Oranges in South Africa. In autarky, the price of oranges in South Africa is P1. When the economy is opened to trade, the price falls to Pw and the change in total surplus is area: O M+N+ 0+P. O. O+ P. O M+N+O+ P+Q.
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