Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Vitalsource Booksh.
Figure 9-1
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The figure illustrates the market for coffee in Guatemala.
Price
150
140
130
120 +
Domestic supply
110
World
100
B.
price
90
80
70
60 +
Domestic demand
50
40
30
20
10
2 468 10 12 14 16 18 20 22 24 26 28 30 32
36 38
52 Quantity
Refer to Figure 9-1. When trade in coffee is allowed, producer surplus in Guatemala
O increases by the area B+ D.
O decreases by the area G.
O increases by the area B+D+ G.
O decreases by the area C+F.
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