give answer of d and e Solution part a b and c(a) 320 tricycles will be imported at the world price. (b) consumer surplus without trade is 9720.(c) total surplus without trade is 19440. 111 Domestic DemandPRICE (Dollars per tricycle)9933360QUANTITY (Tricycles)200c. Refer to Figure 2. Without trade, total surplus amounts toDomestic SupplyA. Refer to Figure 2. With trade, how many units will be imported/exported?B. Refer to Figure 2. Without trade, consumer surplus amounts toD. Refer to Figure 2. With trade, producer surplus isE. Refer to Figure 2. With trade, total surplus isWorld Price520

Consumer surplus is the Area below demand curve and above price. Producer surplus is the area below…

Answered: D. Refer to Figure 2. With trade,…

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D. Refer to Figure 2. With trade, producer surplus is E. Refer to Figure 2. With trade, total surplus is

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 7PA

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Question

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give answer of d and e

Solution part a b and c

(a) 320 tricycles will be imported at the world price.

(b) consumer surplus without trade is 9720.

111 Domestic Demand
PRICE (Dollars per tricycle)
99
33
360
QUANTITY (Tricycles)
200
c. Refer to Figure 2. Without trade, total surplus amounts to
Domestic Supply
A. Refer to Figure 2. With trade, how many units will be imported/exported?
B. Refer to Figure 2. Without trade, consumer surplus amounts to
D. Refer to Figure 2. With trade, producer surplus is
E. Refer to Figure 2. With trade, total surplus is
World Price
520

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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