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Figure 8-13 is a supply and demand curve for the market for iPhones. The demand curve is a continuous diagonal line, and the supply curve

Figure 8-13 is a supply and demand curve for the market for iPhones. The demand curve is a continuous diagonal line, and the supply curve is a continuous diagonal line sloping in the opposite direction. There's several different points along the graph and triangles being shown. A point pa on the y-axis is where the supply and demand curves intersect, point pw is below pa. There are now triangles being shown how these lines and the p axis intersect the supply and demand curves. Above point pa is a triangle a, which is from pa to the demand curve. Below point pa is a shape that goes from pa to pw, and intersects from the y-axis to the supply curve. There's a small triangle c, which is from pa to pw. And it intersects from the quantity at the equilibrium point back to the supply curve. And then right next to that, is a triangle d, which is between pa and pw. And goes from the equilibrium price point over to the demand curve. Lastly, there's one other triangle which is labeled e, and that is from pw down to the supply curve. Reference: Ref 8-13 Figure: The Market for iPhones (Figure: The Market for iPhones) Use Figure: The Market for iPhones. Assume that PA is the autarky price, PW is the world price, and D and S represent domestic demand and supply, respectively. Producer surplus in free trade equals the area: Question 28 options: E. B + C. B + E. B + C + D +E

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