https://file.aiquickdraw.com/mathbot/file/17292958178214kca3na1.jpg

Figure 9-13
nar014-1.jpg

Refer to Figure 9-13. Consumer surplus after trade is
Group of answer choices

$3,600.

$5,400.

$7,200.

$8,100.

The graph you've provided seems to represent a typical supply and demand curve with a world price line. The question asks for the consumer surplus after trade.

To find the consumer surplus after trade, we need to calculate the area of the triangle above the world price but below the demand curve, which represents the benefit to consumers after trade.

### Steps:
1. **Consumer surplus before trade** is the area between the price where domestic supply and domestic demand intersect and the demand curve.
2. **Consumer surplus after trade** is the area between the world price and the demand curve.
3. **Formula for consumer surplus**:
   \[
   \text{Consumer Surplus} = \frac{1}{2} \times \text{base} \times \text{height}
   \]

### From the graph:
- The **world price** is at $6.
- The **intersection of the demand curve** with the price axis is at price $26.
- The **quantity demanded at the world price** is approximately 1,000 units.

#### Height: 
The difference between the highest price ($26) and the world price ($6) is $20.

#### Base:
The base is from 0 to 1,000 units (since this is the quantity demanded at the world price).

Now, calculating the consumer surplus:

\[
\text{Consumer Surplus} = \frac{1}{2} \times 1,000 \times 20 = 10,000
\]

However, this number doesn’t match any of the answer choices provided. Let me know if you'd like to discuss this further, as the discrepancy might be due to some other specific adjustments or conditions implied in the problem.

Would you like more details or clarification on any aspect?

---

### Relative questions:
1. How does consumer surplus change when there is free trade?
2. What would happen to producer surplus after trade in this scenario?
3. How is the total welfare affected by the introduction of the world price?
4. What if the world price was set above the domestic equilibrium price? How would consumer surplus change?
5. What does the quantity supplied domestically tell us about domestic producers' behavior after trade?

### Tip:
Consumer surplus is higher when consumers can buy goods at a lower price than they are willing to pay, as is often the case in free trade scenarios with lower world prices.

Refer to Figure 9-13. Consumer surplus after trade is:

Group of answer choices
$3,600
$5,400
$7,200
$8,100

Learn how to calculate consumer surplus after trade using a supply and demand graph. This problem uses key economic concepts like consumer surplus and free trade, featuring the formula for the area of a triangle. Suitable for college-level economics students.

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