Referring to the graph above, if the world price is $8, consumer surplus (relative to the no trade situation): A. Increases by $60, and producer surplus decreases by $120 B. Increases by $80, and producer surplus increases by $80 C. Decreases by $60, and producer surplus decreases by $80 D. Decreases by $80, and producer surplus increases by $120

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A: (a) Consumer Surplus: Area above price line and below demand curve = 12* 8 * (14-6) = 32 Producer…

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A: To understand things easier, let us label the graph: Generally, remember that:Consumer surplus (CS)…

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Q: Lesson 12 Question 6

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