In the diagram, D and S represent the domestic demand and supply curves for a product. ${S_w}$ represents world supply of the product at a world price of ${P_w}$. The initial domestic market equilibrium of the product is at ${E_1}$.
If foreign trade were to be banned completely, the domestic market equilibrium would be at ${E_2}$.
What would be the loss of consumer surplus if all foreign trade were banned?
1 )
${P_w}X{E_1}$
${P_w}Y{E_2}{E_1}$
3 )
$YX{E_2}$
4 )
$ZY{E_2}$
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