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Workspace Figure 9-2 A graph of price, P, versus quantity, Q, shows a supply curve, Domestic Supply, rising linearly from point (0, 1) to (560,
Workspace Figure 9-2 A graph of price, P, versus quantity, Q, shows a supply curve, Domestic Supply, rising linearly from point (0, 1) to (560, 29), and a demand curve, Domestic Demand, descending linearly from point (0, 37) to (560, 9). The curves intersect at (360, 19). A horizontal line, World Price, extends from P = 11. A vertical line extends from Q = 200 to P = 11. A vertical line extends from Q = 525 to P = 11. Refer to Figure 9-2. The increase in total surplus resulting from trade is a. $2,560, since consumer surplus increases by $7,040 and producer surplus falls by $4,480. b. $640, since consumer surplus increases by $1,760 and producer surplus falls by $1,120. c. $2,240, since consumer surplus increases by $3,240 and producer surplus falls by $1,000. d. $1,280, since consumer surplus increases by $3,520 and producer surplus falls by $2,240
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