-The Above Figure Shows the Australian Market for Chocolate

question 72

Multiple Choice

-The above figure shows the Australian market for chocolate. With international trade, the gain in total surplus is equal to

• A) area B.
• B) area C + area D.
• C) area B + area C + area D.
• D) area A + area B + area C + area D.
• E) area B + area C + area D + area E.

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Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.

Price-elasticity Coefficient

A measure of how much the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity demanded divided by the percentage change in price.

Advertised

The process of promoting products, services, or brands through various media channels to increase public awareness or sales.

Loyal Buyers

Individuals or entities consistently preferring and purchasing a particular brand or product over competitors, often influenced by satisfaction, habit, or perceived value.