Use the Figure Below to Answer the Following Questions

question 12

Multiple Choice

Use the figure below to answer the following questions. Figure 5.2.1
-Consider Figure 5.2.1.When the price is $4 a unit,what is the consumer surplus from the second unit of the good?

• A)$7
• B)$3
• C)$4
• D)$1
• E)$10

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Definitions:

Trade Agreement

A treaty or pact between two or more nations that outlines how they will work together to ensure mutual benefits in trade.

Royalty

A payment made to the owner of certain types of property, such as patents or copyrights, for the right to use that property.

International Monetary Fund (IMF)

Organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation.

Developed Countries

Nations with advanced economic systems, higher standards of living, and well-established infrastructures, often characterized by high Gross Domestic Product (GDP) per capita.