Reference: Ref 17-1 W + X + Y. Reference: Ref 14-11 Reference: Ref 13-6 31. Figu

Question

Reference: Ref 17-1

W + X + Y.

Reference: Ref 14-11

Reference: Ref 13-6

31. Figure: The Market for Roses

Reference: Ref 17-1

__(Figure: The Market for Roses) Examine the figure The Market for Roses. Assume that PA is the autarky price and PW is the world price. In the figure, consumer surplus without international trade would be area: W. W + X + Z. Z.

W + X + Y.

29. Figure: The Market for Used Books

Reference: Ref 14-11

__(Figure: The Market for Used Books) Examine the figure The Market for Used Books. The graph shows the market for used economics textbooks. If a quota of 200 books is imposed, the deadweight loss is the triangle: aie. bhe. cge. def.
Figure: The Market for Economics Textbooks

Reference: Ref 13-6

__(Figure: The Market for Economics Textbooks) Examine the figure The Market for Economics Textbooks. At a price ceiling of $40 in the market, the market outcome would be: a surplus of 30 textbooks. a surplus of 10 textbooks. a shortage of 30 textbooks. a shortage of 10 textbooks. Reference: Ref 22-8
__(Table: Cost Data) Examine the table Cost Data, which shows data for a designer purse factory. The average variable cost of producing 5 purses is: $10 $38 $48 $190

Explanation / Answer

31. The right answer is option 1.

Explanation: The consumer surplus is given by the area above between the price line and the demand curve. When there is no trade, PA is the price. So, the area between the demand curve and the price line is W.

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